How To Make Money; Simply Put, You Need Money To Make Money
It’s ironic that as your sales grow you have less money but it’s a fact that growing sales mean more accounts receivable and more inventory, and this means your business needs more money.
It is important to note that while Leasing, Purchase Order Funding and Invoice Factoring are more expensive options, they are actually great tools to help you grow your business.
Growing your business almost always results in you scrambling to find additional working capital through angel investors, venture capitalists, hard money lenders, small business loans, purchase order finance & invoice factoring companies (to name just a few) but how do you know which one is right for you?
In today’s market it seems as if there is someone trying to sell you something on every corner, but how do you know which product is right for your business? Do you really want to give up equity in your company? Is it OK to use a more expensive form of financing to grow your business? What can you do to make your business more attractive to a bank and how do you know which lender is right for you? These are just a few of the questions that you should ask yourself before preparing to go to market.
“There are many alternate forms of financing available today,” says Carolyn McClure, of Midland American Capital. “Invoice Factoring is the oldest form of financing and a quick way to free up your cash flow. As you know, lack of cash is the number one reason why companies go out of business. Purchase Order Funding allows you to purchase inventory, while Leasing is a great way to access much needed equipment. Micro loans are also available to retailers and restaurants, as well as merchant cash advance programs. While venture capital is a product in high demand, there are very few venture capitalists willing to fund startup businesses, and few established businesses willing to give up equity.”
It is important to note that while Leasing, Purchase Order Funding and Invoice Factoring are more expensive options, they are actually great tools to help you grow your business. PO and AR Lenders do not focus on your credit, but are looking at your customer’s credit and are basing their decisions around the terms of your sale. In contrast, a bank focuses on your credit because you are responsible for repaying a loan.
While there is a plethora of options available to small businesses, it is important to research each one of them to determine what form of financing is right for you. Make sure you partner with a finance expert or loan broker who is familiar with what is available and has the network to make it happen.
- Contact Information
- Carolyn McClure
- Senior Vice President
- Midland American Capital
- (1) 800-753-3300
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