Need a Business Loan? Consider Financing Your Invoices Instead
Looking for business financing can be one of the most important tasks that a business owner handles. Unfortunately, the chances of successfully getting a business loan are actually quite small, especially in the current credit environment. When it comes to business loans, most institutions are very conservative and will only lend to the strongest borrowers. That means that you business will need a solid track record of success. You will need to provide financial statements, most often audited, dating a few years back. You may also need to put up your home as collateral for the business loan.
What can a business owner do if they don't qualify for a business loan? One alternative that has been gaining popularity is to finance their invoices. Most companies that have commercial or government sales need to wait 30 to 90 days to get the invoices paid. However, they have expenses that must be paid immediately. Employees, suppliers and landlords must be paid in a timely fashion. This discrepancy in the timing of your supplier payments and your clients' payments can create a substantial working capital problem. This problem can easily be fixed by factoring your invoices.
Suppose that instead of waiting 60 days to get paid, you got paid a few days after invoicing. Would you still have cash flow problems? Probably not. You can achieve that by using invoice factoring. Invoice factoring provides a simple solution to a simple problem - it advances you funds on your slow paying invoices tiding you over until your client pays. The factoring company charges you a small fee for that service, usually a percentage of the invoice.
One of the advantages of invoice factoring is that the financing company makes their decision based on the credit worthiness of your client. They consider your invoices from reliable clients to be a solid asset and are willing to finance them. This means that small companies whose biggest asset is a roster of good clients can usually qualify.
Another advantage of invoice financing is that your financing line is based almost exclusively on the credit quality of your clients and the size of your sales. Because of this, your financing line evolves and grows with your sales. This makes it an ideal financing program for emerging and growing companies.
Related Tags: business loan, invoice factoring, invoice financing
About Us
Looking for a business loan? We are a business financing company and provide alternatives to conventional business loans. For more information on our small business loan alternative plan, please visit our web site.
Recent articles in this category:
- Earn More Revenue With Media Buying Agency
Media Buying Agency is composed of professionals who can help you get maximum exposure for your busi - Fundraising Idea - Offer Your Supporters A Healthy Product
How do you raise money for your non-profit organization in tough economic times? Consider the benefi - Discount Cards For Fundraising Make Raising Money Easy & Stress Free
Whether you are trying to raise money for the church youth group, the junior high cheerleading squad - Earthquake Survivors In Haiti Receive Aid From Cydcor
One of the leading providers of face-to-face sales teams, Cydcor, donated a total of 25 large boxes - Cydcor Makes Donation To Aid Earthquake Survivors
In the aftermath of the devastating earthquake in Haiti, one company has stepped up to assist surviv - Ultimate Fundraising Will Maximize Your Efforts
How are your organizational fundraising efforts going? Are you seeing a decrease in your funds due t - Raise Awareness For Autism With Fundraising
Are you aware that experts estimate that two to six children out of every 1,000 will have autism? Ar - Tapping Into A Variety Of Fundraising Resources - 2
In the previous document we looked at the new situation school principals find themselves in the new - Maximize Fundraising Profits With The Right Fundraiser
When it comes to running a non-profit organization, it doesn't matter if the economy is good or bad - Fundraising, How You Can Help
Fundraising is the process of gathering money or other forms of gifts from charitable foundations an
Most viewed articles in this category:
- Use Quotations in Your Fundraising Appeal Letters to Inspire and Motivate Your Donors
Next time you write a letter to a donor but can't think of the best way to express yourself, let - Three Simple Steps to Establishing a Goal: The First Step To Successful Fundraising
Creating a logical and realistic goal is the beginning to any successful fundraiser. Goals need to - How to Get Free Wheelchairs through the NHS
It is possible to obtain a wheelchair either funded or part funded by the NHS through what is known - Make More Money by Working Together: Grant Writers of Wisconsin
Grow Wisconsin is a new network of grant writers in WI who exemplify that collaboration begets succe - How To Contact Grant Makers with Success
Last week was a busy one for me: I am the contact person for applicants to a local Education Foundat - Save Thousands by Using a Free Grants Database
I received the following question from a reader: "I serve on the Board of a new foundation that is r - Strategic Fundraising for Startup Technology Companies
Almost every company goes through it, except for the fortunate few. Some people have gone through it - The Changing Face Of Commercial Mortgages In The Uk
Commercial mortgages in the UK have traditionally been somewhat of a mysterious subject and yet ther - Selling Glow Sticks for a Fundraiser
Kids love these glow-in-the-darks sticks. Especially after dark. They can wave them in the air, conn - Why Do People Respond to Fund Raising Letters?
Your fund raising letter must persuade the recipient to take an action that much of humanity thinks