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, owners of small businesses to what is known as the loan market of alternative financing. Although the financing options described in this article comes under the category of alternative financing, they are actually quite commonly used and should be considered in general. Most major 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 only for companies that are already in operation, and the most important requirement is the use of capital. Although start-ups can take advantage of these tools, companies must be in place for some time and has a growing list of customers.

General Invoice Factoring

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 major advantage of factoring your invoices is that the finance company makes its decision using the credit to the payer, rather than yours. This means that if you own a small company that does business with a company with great credit worthy, you are almost sure to get the transaction approved. Another advantage of factoring is that it does not set limits credit lines .. The level of funding is limited only by the amount you sell to creditworthy customers. Among the general factors 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 pharmaceutical companies (the doctor's office, hospitals, research centers, and medical supply companies) make the most of the result of billing insurance companies 3 party, Medicare and Medicaid. Unfortunately, insurance companies have known for 30-90 days to pay bills, create cash flow problems with a doctor's office. Factoring is a medical subspecialty offices in the general factor. Given the complexity of insurance, which generally requires the involvement of a factoring company that has extensive experience in the field.

Overall, the medical factoring company that you contact a financing based on your NET Collection rather than your gross collectables. They will also need to be part of the billing process to ensure they support the right amounts. Because of its complexity, medical factoring is available only to medical societies are at least $ 100,000 per month. But if your business is eligible for it, you'll discover that it is an excellent tool to streamline your cash flow and grow.
Purchase Order Financing