When your business needs equipment, you usually will acquire it in a few ways: purchase the equipment with operating retained earnings, or with borrowed funds to buy it or lease it. If your business needs equipment but does not have sufficient funds or credit to buy it, financing it will be helpful. There are also tax considerations that should be considered to your cost of borrowing.
Asset Based Loan
An asset-based loan is a loan that is secured or collateralize with one or more assets. Created to provide specialized short-term financing in situations where traditional financing is either unattainable or undesirable. It is required that the loan be backed or collateralize with tangible assets such as inventories, real estate, or equipment and the like.
Accounts Receivable Funding (Factoring) Explained
Accounts Receivable Funding (Factoring) is a method of financing used by businesses to quickly raise capital and improve cash flow. It leverages invoices and your receivables by borrowing against them for immediate cash. Customers often have terms and sometimes don’t pay on time. A business sells its invoices at a discount to receive a cash advance within a couple of days instead of waiting 30 to 90 days for a customer to pay the invoice. Keep in mind the capital you factor will be less than the receivables themselves. That’s how the lenders are paid.
Purchase Order Loans and P.O. Loans
P.O. (Purchase Order) loans, and product creation and delivery financing are all the same service. Typically, this financing is required to match receivables with payable and support positive cash flow requirements. So, you can purchase supplies for delivery and sale of final goods for payment. Uncertain cash flow is a common problem for product manufacturers and wholesalers. Purchase order funding provides cash and the proof of ability to pay suppliers so you can procure materials for manufacture or resale products.
Merchant Cash Advance
Merchant cash advance, alternatively known as credit card sale factoring will provide you with immediate working capital for future credit. It will allow you to generate more sales and focus on managing and growing your business, instead of on collections. If you accept credit or debit card payments, you can request a loan against your projected credit and debit card sales. These loans can often be used as a revolving line in case of cash crunches.
We will customize a loan based on the amount of cash your company needs, and the term length you want.
SMALL BUSINESS LOANS
- Get up to $5000.00 to $500,000.00 with Basic Information
- Easy Online Application
- Fast Decisions
- Cash Provided in Just Days
- Transactions up to $10,000,000.00
- Capital Equipment Loans
- Commercial Business Loans
- Operating Leases
- Lease Lines of Credit