How Small is Your Business?
Small Businesses sometimes have problems with funding; it’s just part of the normal business cycle. You have your ups, and you have your downs. But when you are going through one of these down periods, you can often consider seeking out additional funding to get through the lean times.
While we will always recommend funding methods such as factoring, we also believe it is important to follow these steps of assessment to determine your funding.
Factors to Determine Funding
How long has your business been open? If you are in your first few years of business, you are probably used to having dithering funding for your business. If you can monitor your long-term finances and trends of the previous years, you can determine your need for additional funding.
How many employees do you have? The number of employees you have dictates the necessity for additional funding. If you are pushing the limit and risk undercutting your employees, it’s better to play it safe and seek additional funding to keep your employees paid.
How is your business credit score? At this point, you’ve probably built a viable line of credit and positive transaction experience for your business. This makes it easier for you to receive alternative forms of financing.
Forms of Funding
Accounts Receivable Financing – Factoring is the process of leveraging your accounts receivable department for 80% of its total value up front. Instead of taking your time and pursuing these outstanding balances your clients have to your business, we will pursue it for you and give you the majority of the capital up front, with the balance paid after the invoice is fulfilled. Best of all, this funding method is debt-free.
Business Cash Advances – Any company that has been in business for at least three months can apply for a Business Cash Advance. Just fill out our form and learn more today!
Small Business Loans – Small business loans should be a last resort. If you are worried about being in the hole, it is often a bad idea to put yourself in debt to get out of another. However, we offer competitive pricing with low-interest rates for small businesses.
AmeriFactors has been helping small businesses grow for over 25 years. Factoring takes your future sales and accounts receivables and gives you funding based on those invoices. If you would like to learn more about factoring, then call us today at 800-884-FUND.