Where to go when the bank says NO?

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 business Contact Us Author: Andre F. Wilson Sr., Managing Partner, Altima Business...

10 Options to Avoid the 5 C’s of Credit

Conventional financing operates under the premise of the 5 C’s: Cash, Collateral, Capacity, Character & Conditions Cash refers to the contribution borrower will invest. Collateral refers to assets to be pledged, i.e. home, retirement, etc. Capacity refers to the measurement the lenders use to determine borrowers ability to repay loan. I.e. cash flow, existing debt, etc. Character refers to a borrower’s reputation. i.e. credit report Conditions refer to the loan amount and the interest rate the lender would consider acceptable risk to lend to borrower. As entrepreneurs we are often willing to sacrifice one or all of these in order to achieve the dream. So what if you don’t have the 5 C’s? Don’t panic, here are 10 options to secure capital from alternative resources: Factoring Asset Based Lending Merchant Funding Contract/Purchase Order Financing Hard Money Loans Debtor In Possession (DIP) Financing Equipment Leasing Asset Backed Working Capital/Sale & Leaseback Funding Business Loans Micro-Loans For more information on planning, funding, starting, and growing your business Contact Us   Author: Andre F. Wilson Sr., Managing Partner, Altima Business...