1. Your Business Can Access Working Capital
The numberone reasonthat businessesfail isdue toinsufficientcapital (theyrunoutof cash).
Accordingto Bloomberg8out of 10 businessownersfail withinthe first18months.Another50% fail in
the first5 years.Otherreasonsbusinessesfailinclude;lackof experience,badlocation,enteringover
saturatedmarkets,overinvestmentinfixedassets,unexpectedgrowthandpoorcreditarrangements.
Let's addone more to the list;notknowingwhere togoto access workingcapital.
Most businessesownersinvesttheirownpersonal moneytokeepthe businessgoing.Some will goto
friendsandfamilies.Some will trythe bank.Butif youdon't have a lot of assetsto pledge,aproven
track record,a goodcreditratingor are not yetprofitable,the chancesare the bankisgoingto turn you
down.Sowhere doyou go to geta loanto take yourbusinessestothe nextlevel?
There are private companiesthatwill provide aloantoa businessthathasdailycash flow,aslongas
some basicrequirementsare met.A businessownerdoesnothave topledge assetsorhave agreat
creditrating.There are viable financingalternatives,toreceive businessfundingthatare not considered
loans.Businessfundingprogramsdoexist where youare notrequiredtopledge assets,have greatcredit
or a longproventrackrecord. A word of caution,do notexpecttoget the same rates youwouldget
froma bank.These private lendersare takingonmore riskthan a bank,so a higherreturnon their
investmentisexpected.Some of the available businessfinancingoptionsinclude,aMerchant Cash
Advance,aSmall BusinessLoan,Purchase OrderFinancing,Invoice FactoringandSupplyChain
Financing.
Merchant CashAdvance
If your businessacceptscreditcardsand debitcardsthere isa program calleda Merchant CashAdvance
that has veryhighapproval rates.A businessownerdoesnothave tosignpersonallyorhave good
credit.A Merchant Cash Advance isnota loanbut rathera purchase of your future creditcard / debit
card receipts.The advancerwill buyafuture amountof creditcard receipts/debitcardreceiptsat a
discountedrate.A small portionof a businessesdailysaleswill be takenbythe advanceruntil the
amountis re-paid.Typical paybackis6 to 10 months.
Small BusinessLoan
2. There isa small businessloanavailable forbusinessowners.The lenderismore concernedabouta
company'sdailycashflowthenaboutcreditratingsand the abilitytopledge assets.The businessowner
doesnothave to signpersonally.Thissmall businessloanhasveryhighapproval rates,withsome basic
requirementsforfunding.The lenderwill take asmall fixedamountof dailysalesuntilthe loanisrepaid.
The term of the loanisone year.
Purchase OrderFinancing
Has your businessbeenworkingonlandingalarge contract? Congratulationsyoujustreceivedthatlong
awaitedpurchase order.Asyouadmire yournew conquestyousee some small printwiththe wordsNet
30, 45 or 60. Your businessmayhave a cash flow issue.Vendorsandpayroll mayhave tobe paidbefore
youreceive paymentfromyourcustomer.If yourbusinessdoesnothave enoughavailable working
capital or access to workingcapital towaitto getpaid before youhave payyourvendorsandstaff then
whatdo you do?If yourpurchase orderis froma reputable companythenyourbusinessmaybe able to
receive acash advance againstthat purchase order.The purchase orderitself isalegal agreementto
purchase a product or service fromyourcompany.A lender will know thatthe customerwill payaslong
as youfulfill yourendof the contractand advance you enoughmoneytoensure youmeetyour
contractual obligations.A lenderwillbe concernedwiththe customer'sabilitytopay,andyourabilityto
fulfillthe contract.Theywill notbe as concernedabouta businessescreditratingorthe pledgingof
additional assets.
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Resources;
https://en.wikipedia.org/wiki/Barry_Zyskind
