The alternatives of small business funding for your company
It’s important to think clearly about how you are currently funding your business. For example, most business owners don’t realize that their equity is funding an interest free loan to their customers in the form of Accounts Receivable. Most say they didn’t go into business to be a bank. Once you realize how much it costs you, in cash, to lend money to your customers, you may be thinking that you are not managing your equity strategically. Or that an alternative source of small business funding makes more sense.
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As business and finance experts, AdvancedAR is familiar with the small business funding alternatives available to small and mid-sized business executives. Which one is best for you?
Small business funding compared
AdvancedAR helps decipher the pros and cons of each funding option.
Business lines of credit
Bank line of credit for small businesses
Asset based lending
Small business equity funding
Accounts receivable factoring
Invoice discounting
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Growth funding challenges
Small businesses have the hardest time efficiently securing funding.
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Receivables hassels
What you don't know about managing receivables could be causing cash flow woes.
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AdvancedAR's Client Profile:
- Businesses with Accounts Receivable due from other businesses
- Annual Revenue Ranging from $500,000 to $25,000,000
- Invoicing $40,000 to $1,000,000 per month
- Owner has 620+ personal credit score
- Business Lines of Credit $50,000 and up
- Lack of availability of traditional bank financing
- Growing, transitional or restructuring companies