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There is a better way than financing your company on credit cards?

Financing your company in other ways than that with credit cards is very possible. Some options might be, factoring, mezzanine financing, asset based lending, purchase order financing last but not least family and friends.
Seeing first hand the challenges facing the small business community and knowing that entrepreneurs need more than just cash to grow their business, there have been many options come available to help businesses grow.

Factoring is the sale of accounts receivable or invoices at a small discount to obtain immediate cash is a cost-effective way to get funds for your business. Factoring is flexible, accessible, produces fast results, and does not require businesses to commit to a long-term program. The bottom line: Alternative small business financing can provide a winning solution for companies experiencing growing pains.
Small Business Administration (SBA) loan is a guarantee programs available for start-up businesses. With a SBA, guarantee program in hand, your bank will be happy to talk with you! Refer to the Resources section to get more information.
Mezzanine Financing is a hybrid of debt and equity financing.This product is a loan that is used to finance the expansion of an existing company and it takes the form of debt capital.Mezzanine Financing is beneficial because it is treated like equity on a balance sheet and can be used as additional advantage for secured debt.There is usually very little or no collateral to support the advance although security interests may be taken with a junior position to that of the current secured lender.
Asset Based Lending is a credit line based on various asset classes such as accounts receivable, inventory, equipment or real estate.Clients often use asset-based lending as a stepping-stone to traditional bank financing.
Purchase Order Financing is a short-term form of financing used to acquire or manufacture goods that have been pre-sold by the client to its credit worthy customers. Funding involves the issuance of letters of credit or payment of funds that allow clients to obtain inventory to fulfill customer orders.
Family and Friends is often another way of gaining the start up funding needed for a small business. Family and friends will have a stake in your company and will want you to succeed not only on a financial end but also on an emotional end.
If you do choose to go with a business loan of any sort, there are a couple things you will need to keep in mind. Lenders will expect you to prove you are committed to the business and will need you to demonstrate that you will be able to have the ability to pay this loan back. That is why they are in the lending business not the giving business.
Unfortunately starting a business is the time when you will need the money the most, and will have the hardest time getting it. You will need to be able to show the knowledge and understanding you have of the industry, you plan to run a business in. The lender will need to see a commitment and know you are in it yourself all the way.
When you are ready to talk to lenders about the loan or investment you need to start your business, have a repayment plan ready. This will also help show you are aware of the cost and repayment necessary.
Funding a business in other ways than using credit cards is very possible. You just need to use a little hard work and creativity. That and a big smile, but, you already had that covered.

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