Small business financing options.THE ARTICLE "FINDING CASH FOR YOUR BUSINESS" IN THE February 2005 issue was very informative. However, I'd like to note that there are additional funding options out there. Surprisingly, most of us are not aware of options like accounts receivable financing, cash advances, private-money and hard-money lenders, asset-based lending Asset-Based Lending A business loan secured by collateral (assets). The loan, or line of credit, is secured by inventory, accounts receivable and/or other balance-sheet assets.Also known as "commercial finance" or "asset-based financing". Notes: This type of loan is often used to meet various cash flow needs of companies, for example, meeting payroll or building inventory., equipment sale-leasebacks, and unsecured loans. These options may be more expensive than traditional bank loans, but they can offer faster funding with less stringent guidelines when cash flow needs are prominent. To learn more, small business owners should contact a local business-financing consultant or broker. The benefit of having a broker is that someone else takes on the time-consuming task of locating financing while you focus on the daily operations of your business. As in any profession, there are some bad apples out there, so be wary. Danielle Dupree, CEO/Broker 1st Choice Financial L.L.C Rockville, MD dddupree@funds4yourbiz.com |
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