Business Funding Alternatives

In today’s economic climate you may have found, if you are a small business owner, that it is increasingly more difficult to get the money you need from the bank.  So what are you to do when you need a little extra to repair the roof or make your rent for the month?  More and more, small business owners are turning to other ways to get the funds they need.

Factoring is one way that you might be able to get the money you need.  You can factor credit card sales or invoices.  With invoice factoring, you sell your unpaid invoices, at a discount of course, to a factoring company who then will take on the job of collections.  This can be good for small businesses who are struggling with waiting for clients to make payments or spend way too much time dealing with collections.

If you factor your credit card sales, you can get a cash advance of a certain amount based on the volume of your credit card sales.  The cash advance provider then takes a certain percentage of your credit card sales until the principal of your loan is repaid.

Either option of factoring is a way for small business owners to go around the hoops that the bank makes loan applicants jump through.  Not to mention the fact that the loan application process is much easier.  You don’t have to supply a business plan or a personal guarantee.  That means that you can use the money for whatever you need, and you don’t have to spend as much time worrying before you get the funds you need.