Factoring Your Receivables

October 19, 2011 By

Another source of money for business is factoring. That is if you have current sales, and have to wait for your receivables to come in. Many small businesses do this; however, it cuts deeply into your profit margin.

Essentially you are giving title to your Receivables to a third party in exchange for a discounted rate on the total sale plus a deposit on each transaction leaving you with anywhere from 70-90% of the total sale. Usually, the third party has recourse to charge back the amount paid to you if the customer fails to pay their bill. [Read more...]

Filed Under: Factoring

How Business Grants Work

October 18, 2011 By

Business Grants which usually do not need to be repaid come with specific requirements leading to advancements or improvements addressing areas of need.

They are more likely connected to research such as health, energy or other specific areas where businesses are not likely to invest because too significant of a financial risk. [Read more...]

Filed Under: Business Grants

Venture Capital Funding

October 18, 2011 By

Venture Capital is reserved for companies that are in high growth, but have established themselves as likely to succeed. This type of capital doesn’t come into play until a 2nd or 3rd round of funding and usually in significantly larger chunks of a couple hundred thousand to a million dollars or more.

Venture Capital is most often used for growth after a model is proven, but sometimes can be used for acquisitions of weaker companies, merging them together to create a new stronger healthier company.

[Read more...]

Filed Under: Venture Capital

How to Get a Business Loan

October 18, 2011 By

Business loans have always been challenging to secure, it’s even more difficult in the current economy. That why I want to tell you how to get a business loan with a source that you might not have considered.

The company brings borrowers and lenders together. Unlike a normal banking relationship, this company is a facilitator of individuals and funds that want to make loans to people who are credit worthy, but might not have the capital to secure a normal bank loan. [Read more...]

Filed Under: Loans

Angel Investor Financing

October 18, 2011 By

Angel Investor Financing can be a great source of initial funding. They are individuals who have a high net worth and are capable of investing in high risk businesses such as financially challenged or start-up companies.

Angel Investors make their own decisions when deciding which companies that they wish to invest in. They don’t rely on groups, which are funds or Venture Capitalists. [Read more...]

Filed Under: Angel Investors