Bummer! The bank said NO! You were well-prepared, walked into your bank confident in your brilliant business idea for your start-up or business plan for your expansion and growth — and you are walking out empty-handed…
It happens everyday. In this economic climate it has become increasingly difficult to secure capital because all the traditional sources of funding have contracted to a point that they are almost non-existent. This doesn’t mean you can not obtain funding.
Here are 5 ways to leverage the many alternative sources available to you:
- Merchant Funding: A cash advance, as a lump-sum, is obtained against future credit card receivables.
- Revenue based financing: Unrestricted capital for growth is provided in exchange for a small percentage of future years’ revenues.
- Factoring: Through a financial transaction, a business sells its account receivables (i.e. invoices) to a 3rd party (called a factor) at a discount.
- Asset-based lending: Capital is secured by using “hard” assets such as land, equipment, buildings, inventory, purchase orders, contracts, receivables, etc., as collateral.
- Equipment leasing: A firm can obtain the use of certain fixed assets for which it must pay a series of contractual, periodic, tax deductible payments.
What are the trade-offs? What does the future of your capital plan look like? Choosing the right funding method for your company is of the utmost importance for your success!
For more information on planning, funding, starting, and growing your businessContact Us
Author: Andre F. Wilson Sr., Managing Partner, Altima Business Solutions