What Alternatives Do You Have to Fast Business Funding
There are many alternatives to fast business funding other than banks. Knowing what they are and how to access them could one day save your business.
Some people think of alternatives as a runner-up or second best. However, there are some instances in which the other option is even better than the original choice. This is certainly true when it comes to alternatives for fast business funding.
Alternatives to Fast Business Funding
Realizing that banks are notoriously slow when it comes to lending money, many alternative lending companies have come along to offer small business financing. It is crucial to know what options are available so you can make the best choice for your small business.
Traditional factoring companies have received a lot of press recently. These companies will purchase your account receivables and provide you with cash faster than a traditional bank.
The disadvantages of factoring companies are that they may lock you into long repayment schedules, trapping you in a loop for up to two years. They also have expensive fees for their services, thousands of dollars, which get added to the cost of your loan. In addition, your clients have to send their payments to the factor, signaling that your business is having financial difficulties.
Cash advance companies, like Financing Solutions (www.fundmypayroll.com), work differently. They also purchase your account receivables but provide a more temporary payment arrangement. Most businesses that use cash advance companies repay the funds in a few short weeks or months.
Another plus of cash advance companies is that you can get the fast cash you need in as little as 48 hours. Also, there is no change in how your customers pay their money or in how your employees receive their checks. Therefore, no one ever has to know about your temporary cash flow shortage.
Reasons Why Fast Business Funding is Often Necessary
The concept of credit has forever changed the way business gets done. These days, everyone is accustomed to purchasing goods and services now but paying for them later.
As a result, you may have tons of account receivables but no cash because you have to wait 30, 60, or 90 days for your clients to pay. Unfortunately, you have to make payroll and pay your bills today and your employees and creditors will not wait for your account receivables to become due.
How Fast Business Funding Can Help Your Company
People are your company’s biggest asset. You have the clients or customers who choose to spend their hard-earned dollars on your product as well as your employees who serve them. Nevertheless, none of it would be possible without you, the small business owner.
Of course, there are times when you need fast business funding to pay business taxes or make payroll. On the other hand, perhaps the biggest benefit of fast business funding is the peace of mind you gain when these problems are off your plate.
When you are stressed and worried about how you will pay employees and keep the doors open, other areas of your business may suffer. While you have your head down crunching the numbers, or running around town looking for an emergency business loan, profitable business opportunities could be passing you by.
The saddest part is that even if you do discover these big breaks, you may be reluctant to jump in and take advantage because of fear. You might not want to spend the necessary funds on a new venture due to anxiety about running out of cash.
Sometimes, you may try to rationalize this trepidation by telling yourself that you will seize that great business prospect later or next month, when everything is perfect. This is not always possible. In some cases, when an opportunity stops knocking, it is gone for good.
One benefit that you can take advantage of today is alternatives to fast business funding. With cash advance companies on the scene, there is no need to wait and worry any longer.