[et_pb_section fb_built=”1″ _builder_version=”3.22″][et_pb_row _builder_version=”3.25″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”][et_pb_column type=”4_4″ _builder_version=”3.25″ custom_padding=”|||” custom_padding__hover=”|||”][et_pb_post_title categories=”off” _builder_version=”4.5.1″ _module_preset=”default” global_module=”10641″ saved_tabs=”all”][/et_pb_post_title][et_pb_text _builder_version=”3.27.4″ background_size=”initial” background_position=”top_left” background_repeat=”repeat”]If you run a business, you know that there are times when cash flow is king and concepts like expansion or extensive maintenance can be waylaid if you don’t have a funding source that you can turn to to finance projects.
It is for that reason that during the last recession, a number of alternative funding firms opened up and started serving companies that were earning revenue, but weren’t always at the top of the financial food chain due to the adverse environment.
They were so successful at funding worthwhile businesses that after the economy improved they became an even larger part of funding picture from a market perspective.
Here are a few ways that alternative business funding can set businesses up for the future:
Bad Credit Business Loans:
Although most of the loans that companies like AFN, or Advanced Funds Network, make are to companies that do not have bad credit, it is the case that there will sometimes be a good reason that your firm continues to make good revenue, but does not have a stellar credit rating. So if you do happen to have some dings on your credit rating and would like to get a loan, there are options available that are mainly tied to your firms ability to generate revenue on a regular basis. A business loan for a firm with bad credit can actually help you to rebuild your credit as you pay it back on time in addition to providing you with the funds that you need to move forward.
If you are a small company and land a large contract with a firm or government agency, there will often be requirements that ask you to pay out for equipment or tools or software up front. The nice thing about receivables factoring is that once you have a document from your vendor, instead of making a large payment from your cash flow, you can get a line of credit that will allow you to make that purchase and keep your cash flow even until the payment from the client comes in. This type of financing is a forte of AFN, and it can provide you with the ability to bid on contracts that are large enough to expand your business.
Business Line of Credit:
Receivables factoring works well for individual contracts. But what if you have a regular need for large payouts that can eat into your cash? The answer from AFN is to qualify for a business line of credit. It takes less than a day in some cases and your firm can end up with a line of credit that you can use whenever you need it to cover payroll or add to your fleet or buy office furniture. Moving beyond managing cash flow and being able to focus on creating more opportunity is a fundamental step in a company’s growth. With another business line of credit you end up with more options almost immediately, as the average wait time is measured in hours.
Overall, although there are many different ways that you can fund a business, using alternative business funding is a fast growing segment that deserves a look. It promises quick approvals and reasonable credit limits without making interest be too much of a burden. In most cases, companies that choose to use a line of credit have integrated its use into their business and remain customers for years.[/et_pb_text][/et_pb_column][/et_pb_row][/et_pb_section]