Chapter 6: Business Financing Made Simple
Do you have a new or growing business? If you do, sooner or later you will need business financing. Of course, if you are like most business owners, your first inclination might be to look for a business loan.
Unfortunately, business loans can be very hard to get, take weeks to set up and don’t fit too well with most businesses. You might be better off looking for alternative business financing products.
I am going to discuss two alternative business financing products. As opposed to the traditional business loan, they are easy to obtain, can be set up in days, and they grow as your business grows.
Invoice Factoring
If your biggest business financing challenge is that you have clients who take as long as 60 days to pay their invoices, then the solution is to factor your invoices. Factoring, or invoice factoring as it is often called, accelerates your clients’ invoice payments and gets you paid in about 2 days.
Factoring does not involve changing your customers’ payment habits, but rather, financing your slow paying invoices through a factoring company. With factoring, you can capitalize on your invoices and get the funds you need to meet payroll and pay suppliers.
Purchase Order Financing
If you are a reseller or wholesaler and your biggest challenge is that you cannot afford to pay your suppliers, then purchase order financing is the best tool for you. Purchase order financing provides you with the necessary funds to pay your suppliers (usually by a letter of credit). This enables you to buy the goods to fulfill your orders and make the sale.
Both purchase order financing and invoice factoring can be obtained from a factoring company (rather than a bank). Both solutions are very affordable, but they work best when the business has profit margins of 15% or more.
So, if you own a business that needs financing, be sure to look at these non- traditional business financing tools.
Business loan and how to acquire it
Business loan can cater to your each and every aspect of your business. The urgent requirement of funds for your business can be catered through a business loan. It is easy to seek a business loan now a day. All you need to do is to fill up an online application form and your application form will reach to suitable lenders.
The lenders may contact you by making thorough analysis of your application form. There are lenders in U.K. who can provide you with the business loan quickly and with great ease.
Business loans are offered according to your need and business concern. A business loan can be availed by entrepreneurs for various business requirements. It can be used for purposes like maintaining cash flow, establishing infrastructure, purchasing office equipment’s, machinery etc.
A business loan can be sought for small, medium and big businesses. If you are suffering from an adverse credit history then also you can seek a loan. It can also be used to start a new business venture or in expanding your existing business.
The business loans are flexible enough for loan repayment terms depending upon the current revenue trend. A great advantage with a business loan is that you will get competitive interest rates and your loans would be processed faster. The growing competition among the lenders in UK will help you in getting a business’s loan cheaper.
With a business loan you can attain an unimaginable profit in your business. Business loan will help you to cater to all your business need which would be really tough for you from other resources.