Finding the right financing for your small business does not have to be a chore nor does it have to be overwhelming. After your business plan is in place make sure your goals match what is set out in your business plan and that there are realistic projections. When that is done, it is time to think about what financing strategy would work for you.
Traditional financing may be the first thing people may consider, however, if you do not have the liquidity or cash flow, there are options and alternate financing. Angel investors may not be easy to find, but they do exist and are easy to work with, they have business smarts and are typically patient. Strategic investors may make it easy to get the funding you need, but because of their proximity to manufacturers or marketing strategists within the industry, they ultimately become more self-serving than supportive of your business goals.
It may be surprising, but many times friends and family can be very supportive of business ventures, and may view the opportunity of investing in your business as a way of keeping it in the family. Keep in mind, though, that whatever money is available is typically a one-time offer, so good planning is essential.
Invoice factoring is an excellent alternative as a small business financing option that is hassle free and would give you the much needed working capital necessary to grow your business putting it back on solid ground. Your accounts receivable can be converted to cash and customized to suite your individual needs. There are many companies that stand ready to assist you and to help you succeed and achieve your goals. Asset based lines of credit, accounts receivable factoring, and purchase order financing are just a few alternate programs that these commercial companies have. Well trained professionals have the expertise to help with the application process, take the time to listen, and answer your questions.
Commercial finance companies are equipped to work with small start-up businesses as well as large enterprises with million dollars in sales. It is important to research your options, ask questions, as there is no time like the present to get a quick, professional solution that helps you reach your long term goals.