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...]