Business Funding

If you've been turned down for a bank loan because your business plan has been deemed too risky, you don't have to give up hope. Banks are notorious for turning down loan applications for people looking to fund new business ventures because they will not fund anything without collateral that doesn't have a history of financial success. This can make it very difficult for new companies to secure the funding needed to get their foot in the door, so to speak.

However, there are financial alternatives available for new companies who are experiencing difficult securing funding through traditional means. Factoring is one form of business funding that is increasing in popularity even though it has been around for quite some time. It entails borrowing money using promissory notes as collateral.

For example, a company sells its account receivables to a factoring service like Factoring Associates, for a small fee. In exchange for these unpaid but guaranteed invoices, a company will receive immediate cash. It is a simple, low cost business funding form which ensures that your company can manage cash flows much easier.

Fund your new business through factoring
Let's assume you are starting up a new shoe manufacturing company. Because you are a new company, your suppliers demand payment up front, which can be quite costly. And in an attempt to get new clients, you have decided to offer free shipping and a net 60 repayment schedule on all new orders placed. You will need a significant cash flow in order to make this work. Without a loan or a line of credit, you may have trouble gathering together enough financial clout to make the business work.

This is where you need to seek out alternative business funding ideas in order to establish the financial backing you need. Factoring is one of the most effective and successful method of business funding because it provides new businesses with immediate cash without incurring any debt or putting down your personal property as collateral.

A factoring company can sometimes lend you up to 80% of the total account receivables, holding on to the remaining 20% until the invoices are paid in full by your customers. You then get the remaining money when the invoices are paid, with the factoring company taking a negligible percentage as payment for their services.

In addition to getting the money you need to start and grow your company, alternative and non-traditional forms of business funding such as factoring can also provide you with effective credit checks. You can know the credit history of your customers, useful information which can protect you from risk of loss in the future.

Moreover, factoring lets you borrow against sales you have already made. This means that you won't be incurring any more debt and you certainly won't have to risk your house or another piece of property as collateral. Business funding alternatives are available for your new venture. Find out more about your funding options so that getting turned down for a bank loan doesn't have to mean the end of your dream.

Getting started is simpler than you think. Contact us here today to talk about asset based lending, or apply now to get the process started. We may be able to provide you with cash within 48 hours. Try getting that kind of service at your bank!

FAQ | Glossary | Process | Required Documents | Services
Accounts Receivables Outsourcing | Small Business Funding
Accounts Receivable Management | Business Receivable Factoring
Factoring Financial Services | Accounts Receivable Factoring Company
Factoring Accounts Receivables | Accounts Receivables Factoring