Small Business Loan Alternatives
Are you looking to finance your growing small or mid size business? Haven’t been able to obtain a small business loan? Most company owners think that a business loan is the only business financing option that they have. Although small business loans have some advantages, they are also:
- Hard to obtain
- Difficult to get quickly
- Best suited to purchase capital goods
However, there are alternatives that can work very well with certain businesses. We don’t offer small business loans - but rather specialize in an alternative form of business financing
Pre qualification Criteria:
- We can only work with established businesses
- You must have good commercial or government clients (no exceptions)
- You must use the working capital to pay suppliers, employees or operating expenses
Do your clients pay your invoices in 30 to 60 days? Is that a problem?
One of the bigger challenges of doing business with commercial or government clients is that they always pay their invoices 30 to 60 days after receiving them. Although more established firms can usually afford to wait - many small and medium sized businesses can’t afford to wait. They must meet payroll, pay rent and cover other business expenses. Most business owners would not be looking for a small business loan if their clients paid quickly.
We can finance your open invoices:
We can eliminate the payment wait and provide you an advance on your slow paying invoices. This can provide you with the working capital to pay current business expenses and to tackle new opportunities. The process works like this:
- After completing your work, you invoice your client
- You send a copy of the invoice for financing
- Your company gets an immediate 80% advance
- Once your client pays for the invoice, you get a second advance of 20%, less the financing fee.
Financing your invoices has a number of benefits:
Financing invoices can help businesses improve their cash flow by providing working capital to pay:
- Suppliers
- Employees
- Rent and other expenses
However, the biggest advantage of financing your invoices is that it eliminates the uncertainty of waiting to get paid. It provides predictable cash flow and places companies on a better financial position. Also, as opposed to other forms of financing, we consider your clients to be your biggest asset. That means that companies with a solid roster of credit worthy clients can thrive with invoice financing.
Most companies that have commercial sales can qualify for this type of financing, provided their clients have good credit, their invoicing practices are good and they are free of liens and encumbrances. This makes invoice financing more accessible than conventional small business loans.
Would you like an invoice financing quote?
Would you like an invoice financing quote? Please fill out this form for an instant quotation.
For more information
We have assembled a small business financing library with articles about invoice financing.
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