Here it is…our little-known fast money strategies to nance your business. There are 79 ways to gain the money you need to grow your business all presented here in one document. There is plenty of tips and ‘how-tos’ on a wide range of money sources — some may be familiar to you while others are creative ‘street-savvy’ methods few know about. One strategy may be all you need or a combination of strategies will help you nance your business.
Read over the 79 strategies and take notes as you do. Check off the strategies that you can use to get the money your business needs.
For your convenience, we’ve included a checklist of the strategies you can print out as you read the e-book check off the strategies you want to pursue. Then when you finish you’ll have a game plan ready to execute.
If you have questions feel free to contact us. We have complete advisory programs to help you establish business credit and obtain the capital you need. With our Business Credit Accelerator II Program, a Certied Business Credit Advisor will be assigned to you and your business to help build an A-1 business credit prole. Our Business Credit Advisors have a background in a multitude of substantive
s and are uniquely suited to advise you on business credit development and capital structure.
1. Accounts-Receivable Financing
Accounts-receivable financing is also known as invoice or accounts-receivable “factoring.” It is an
apopular form of raising capital for an existing business. Factoring is most suited for a business that has a large volume of receivables. It works through a specialist factoring company that advances the value of a percentage of the receivables to your business, less a fee, and may assume the responsibility for collecting the factored funds. Who assumes the risk for non-payment depends on whether the agreement is for Non-Recourse Factoring (the factoring company assumes the risk) or Recourse
Factoring (you assume the risk), which is most common. Factored receivables usually realize between50% and 90% of value depending on the likelihood of collection identified by the factoring company.
What rates the factoring company will charge you depend on several ‘risk factors’:
the credit worthiness of your customers
the value of the ‘typical’ invoice
the volume you pass to them for factoring
• the average time to collect on receivables
In general, lower risk and higher volume for the factoring company lead to more favourable rates.
When to consider this option:
If you have a small, start-up, or fast-growing business that needs money to build inventory, create an infrastructure, maintain growth, pay creditors on favourable terms, etc., but can’t get it from traditional lenders due to a lack of business and credit history.• If your company has a limited credit history but your customers have solid credit.• If you want to offer your customers 30-day payment terms but need cash for your business more quickly.• If your company is a service, manufacturing or wholesale business. Other options may work better for retail businesses or those with complex products/services.
What is involved:
• Before you begin the process, make sure your accounts receivable is not pledged as collateral to any other lender, as is typically true with bank loans. Check your state’s Uniform Commercial Code (UCC) registry for any public documents that reect this type of commitment.• Next, the factoring rm will want to review a comprehensive list of financial documents in order to provide you with a quote for their services. These include your company’s most recent:
• Prot and Loss Statement•
• Accounts Receivable Aging Report• Accounts Payable Aging Report•
You will need to sign a contract with the factoring company, which will outline terms such as the length
of the agreement, the advance rates, fees, and other terms, and pay a fee to cover background checks, legal searches and contract development.
• Once the contract is in place, you will need to forward your invoices and proof of delivery of products/services in order to receive payment
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