Do you own a growing business that requires funding? If you're like most business owners, when your company needs money you go to the bank. Unfortunately, as business owners the smallest quickly find that most banks do not lend money to businesses unless they have substantial guarantees and a history of successful operations. This represents a challenge for business owners.

When banks are not an option, small business owners are turning to what is known as the market for alternative financing funds. Although the financing options discussed in this article fall into the category of alternative financing, are in fact widely used and should be considered in general. Most important companies (including SOEs) have used this funding alternatives at one time or another in their growth story.

Most of the tools described in this article may be used by companies that are already in operation, and whose main requirement is a working capital. Although startups can take advantage of these tools, companies will be in operation for some time and has a growing list of clients.

Invoice factoring general

Invoice factoring (also known as factoring accounts receivables) is suitable for entrepreneurs who can not afford to wait 30-90 days to pay their customers. Allows companies to sell policies to business customers in financial company for immediate payment. Finance Corporation to buy the bills off and wait for the client to pay.

The main benefit of invoice factoring is that your financial institution's decision is to the credit of the debtor, rather than yours. This means that if you own a small company that does business with a company credit worthy of great size, is almost certainly have approved the transaction. Another advantage of factoring is that it does not set limits, such as credit lines .. The level of funding is limited only by the amount sold to creditworthy customers. Among the general factors that can work with most industries, but there are two sub-specialties of the main industry - factoring and invoice factoring medical transportation.

Invoice factoring freight bill

Trucking companies are very cash hungry businesses. The owners need money to pay their drivers to pay for petrol and pay suppliers. However, most trucking companies are also a large number of invoices goods to creditworthy customers. Renders factoring waybill the ideal solution for their cash-flow problems. Just as in general, factoring, factoring companies buy invoices for freight trucking company in cash immediately .. In addition, the risk of such events is usually lower than factoring. This means that trucking companies can benefit from attractive financing terms.

Medical Factoring

Most companies in the medical industry (doctors' offices, hospitals, medical tests and medical supply companies) spent most of their income by a third party billing insurers, Medicare and Medicaid. Unfortunately, insurance companies are known to pay their bills within 30 to 90 days, creating liquidity problems in the medical office. Offices factoring medical sub-specialty factoring general. Given the complexity of the insurance industry, it generally requires the participation of a factoring company with extensive experience in the industry.

In general, the factoring company will provide funding of collectibles based medicine NET instead of their gross collectibles. They will also be part of the billing process to ensure that are used to fund the right amounts. Due to its complexity, medical factoring is only accessible to medical companies at least $ 100,000 per month. However, if your company is entitled to it, is an excellent tool to optimize your cash flow and grow.

Purchase Order Financing