Published By Credit Suite at October 30, 2015
If you are looking for money for your business it is essential that you deal with a company who can offer you extensive finance options.
As business owners we tend to rely on our bank when we need funding. The problem with this is banks only have access to limited financing options.
And most financing options banks do offer look at all the business financials, the personal credit and assets of the owner, and other business factors such as revenue and assets.
These loans, such as SBA insured loans, are tough to qualify for as all aspects of the business must be perfect to be approved.
This is why it is essential that you work with a company who can offer you financing options through many lending institutions and investors, not just the limited sources banks offer.
Many types of available financing will not look at all the business financials, or the assets or credit of the owner, or even the revenue and business assets.
There are many sources of financing available that only focus on certain aspects of your business, not the entire business itself.
For example Purchase Order financing is a way you can secure money for your business quickly. With this option a factoring company is only focusing on your outstanding purchase orders, and nothing else.
The lender is more concerned with your client’s ability to pay than yours, and the lender will even collect on the outstanding purchase orders for you.
Your business and personal credit and assets don’t really tie into the lending approval decision; they are mainly concerned with only your purchase orders.
Account Receivable financing focuses on your receivables, Equipment Financing focuses on what equipment you own, Revenue Financing focuses only on your business revenue.
These are only a few of many financing options that are available to you which focus only on certain aspects of your business, not your entire business.
This makes it easy for you to obtain financing based on the strengths of your business, while insuring lenders ignore the weaknesses.
Another benefit of having finance options is that your monthly payments can also vary.
If you obtain a SBA loans, your payments are set on how much you must repay each month. So if you have a slow month, it might be tough to repay that loan payment.
But many finance options limit how much you must pay back to how much revenue you are bringing in.
For example you can obtain $50,000 through a Merchant Advance and you will be charged a small percentage on your future credit card sales until you pay back the loan.
If your credit card sales drop in a month, so does your loan payment. So as your sales fluctuate so does your payment.
Business Revenue lending works the same as it is based on your business revenue. If your monthly revenue drops in a month, so does your loan payment.
Insure you work with a company who can offer you a multitude of financing options for your business.
This will insure you can get approved for the money you seek with repayment terms you can afford.
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