All existing businesses need cash flow and money to grow. Lets look at business loans, accounts receivable factoring, investors and other sources of money. We will even explore expanding your business through the use of bootstrapping methods.
Accounts Receivable Factoring: We will start with a Factoring definition, talk about the options for factoring invoices and go through a checklist to see if your business cash flow statement is a suitable to your business cash flow needs. The best situation to take advantage of receivable factoring is if your business sells to credit worthy businesses. There also is credit card factoring if you sell to consumers. We will also point you to several sites with a factoring calculator.
Commercial Loans for Your Business: Many established small businesses can qualify for a secured business loan. This would require you having some business assets to pledge as collateral to the bank lender. Small business equipment loans fall into this category, as well as, business car and truck loans. Unsecured small business loans are very difficult to find in today’s banking world.
Unsecured Personal Loan: There are still many ways to use unsecured personal credit to fund your business. Many entrepreneurs use personal and business credit cards as their only business line of credit. This has many risks but if used carefully can be highly effective.
Peer to Peer Lending: This is an exciting option for loans under $25,000. Many on-line websites facilitate funding loans directly from pools of individuals. Also known as, social loans. I have participated in over 800 of these loans as a lender and will be sharing my experiences in detail.
Business Investors: There many local and regional groups of investors who will fund business growth. But … this may require you to give up equity in your business and you will lose some control. Long term you may rest losing total control. We will show you how to find investors.
Personal Investors (Friends and Family): This has been done for ages. Today, you need to offer a high rate of return and possibly some shares of ownership of you expend beyond Mom and Dad for money. There are web sites that help you to formalize the loan contracts and make the loans legally binding. I am sure this is how you want it …Right?
SBA – Small Business Administration Loans: We are devoting a large amount time to helping you to; find SBA lenders, learn SBA loan requirements, find an SBA business plan template, get ready to complete the SBA loan application, and to fully understand the SBA loan terms. In a similar manner we will do the same for VA small business loans.
SBA can be a great resource for business funding, however, it is like all government – slow and cumbersome. Carefully decide if it is right for you.
