For many small businesses, traditional lenders simply cannot provide the kind of immediate assistance needed when cash flow slows to a crawl, or when business opportunities suddenly pop up, and require an immediate investment. Alternative financing can work much more quickly than conventional lenders can, because the industry is less heavily regulated, so there’s not nearly the same amount of paperwork and waiting. Here are some alternative financing options which may work for your business.
Accounts receivable factoring
If your business does a high volume of transactions which involve invoices, you may want to consider accounts receivable factoring. In this kind of financing, you would sell some or all of your customer invoices to a factoring company, in exchange for an amount equal to approximately 80% of their face value. Then the factoring company would own the invoices, and collect the amounts which would have been owed to you. Your company gets immediate cash, and no longer has to worry about collecting on the invoices.
Merchant cash advances
This kind of financing works well in a business which has a high volume of credit card sales. An alternative lender would provide you with a lump sum of immediate cash, in exchange for an amount to be withdrawn from your credit card sales account daily. Just like receivables factoring, this is not a loan, and there is never any monthly payment to be made to a lender.
Purchase order factoring
If you have a manufacturing business and you are in need of funding to build a large order for a certain customer, you can use purchase order factoring through an alternative lender, to fulfill the order and increase your credibility. The alternative lender would pay your suppliers for the materials directly, and when you have built and sold the finished goods, the purchase order factor would be paid for the original investment, plus an appropriate factoring fee.
Alternative financing with Skybridge Capital Group
When conventional lenders just can’t provide you with the funding you need for working capital or to solve cash flow issues, let Skybridge Capital Group work with you to find the right solution. Contact us today, and learn how alternative financing can help your business.