If you are new to the landscape of business loans, it may be a bit jarring at first; all the technical banks terms, acronyms and complex terms and conditions can leave your heads spinning. A common misconception is that a cash advance and a line of credit for a small business are similar and it’s easy to see why entrepreneurs don’t know the difference at first.
Cash Advance – This is an advance; so the cash that is received is contingent on future sales. Often called a merchant cash advance, this is where business owners will agree to pay back an up-front loan with future sales and pay a portion of the credit card sales directly back to the lender. It’s a way for a business owner to rely on future sales to cover current costs. A lot of business will find themselves opting for a business cash advance as a means to stay afloat in slow times or if opportunity strikes.
Business Credit – When you apply for a line of credit, it works in a similar fashion for businesses as it does for personal credit. You are allotted a certain credit amount and you can chose how much you take from there. Then interest is applied and you are to pay back the loan in a certain time frame or a certain amount per month. A line of credit can seem appealing at first but the same pit falls apply.
At the end of the day, there are pros and cons to both and knowing the difference is the first step to making an informed decision. Check out the Ace Biz Funding blog to learn more about small business loans.
If you’re a small business owner, you are probably wondering what would be the right business funding option or loan for you company. There are a multitude of great loans for your company, and the best one to suit your needs is out there right now. Matching you to the right loan for your company is what Ace Biz Funding, the loan service, is best at. The business funding options bellow will give you an idea of what you can expect when you use Ace Biz Funding:
– Term Loans – Term loans are one of the funding options available to business owners that outlines the period, amount, and interest involved in the loan. This is a popular choice for businesses that want to boost growth.
– Cash Advance – A cash advance is an option taken by businesses that need cash in a very short period of time. Unforeseen circumstances may arise that require your company to take drastic measures to ensure stability and future growth.
– Inventory/PO Financing – Inventory financing is a line of credit or short term loan given to a company that allows the company to purchase products. The inventory is then used as the collateral for the credit.
– Accounts Receivable – An asset finance that is distributed to a company where the money owed to the loaning company by its customers is sued as the collateral for the loan. Usually the receiving amount of the loan is equal to the money owed by customers.
– Asset Based Lending – This is a loan procured by a company secured by the assets as a form of collateral.
Talk to a lending professional at Ace Biz Funding to find out which loan, line of credit, or business funding option is right for you.
Purchase order (P.O.) Financing is a type of funding that can help businesses fill customer orders by increasing the business’ cash flow.
Sometimes businesses become restricted in growth because of their financial situation – and this is when P.O. Financing can be extremely beneficial. Unlike factoring, which will accelerate cash from your invoices, P.O. Financing provides the funding necessary to provide good to your customers before an invoice is ever generated.
Purchase Order Financing is the perfect solution for business that need working capital to fuel your business growth.
Some benefits of purchase order financing are:
- O. Financing is not a loan
- O. Financing lifts your financial restrictions by –
- Paying your suppliers
- Taking on larger orders
- O. Financing protects you from bankruptcy and insolvency
Through Ace Biz Funding’ simple application, your business can be approved in less than 24 hours for purchase order financing. Our financial company can get your business approved from $350,000 to $10,000,000!
Not only does Ace Biz Funding finance up to 100% of your company’s existing purchase orders, but our cash-flow based loans allow your business to grow and acquire more inventory.
Apply for P.O. Financing today online or call us at 800-000-0000 to speak with a Purchase Order Financing specialist!
Working Capital is the funds required to pay for equipment inventory, insurance, etc. If your business is struggling with growth because of working capital restrictions, here is a list of 7 places where you can receive business funding.
7 Places to Find Capital
- Banks – traditional lender for loans.
- Pros: Easy place to obtain funding with reasonable rates.
- Cons: Must have a good bank record or high credit score to be approved or get low rate.
- SBA – Government ran organization called the Small Business Administration
- Pros: They provide grants and they pay a portion of your business loan if you default.
- Cons: They do not ‘lend’ money, they provide grants if eligible. So the guarantee of funding here is slim to none.
- Credit Card Financing
- Pros: This is a great option if your credit card limit exceeds the amount you need.
- Cons: If you do not see a return on your investment, you have utilized all of your funds and are stuck with a high interest rate and a maxed out credit card.
- Crowd Funding – Asking the public to fund your idea.
- Pros: No debt, loan or repayment. Sites like GoFundMe.com are free for crowdfunding.
- Con: Putting your idea out there risks a competitor taking it.
- Angel Investors – Investors that provide funding in exchange for ownership equity.
- Pros: Provide capital with no repayment in exchange for equity.
- Cons: They have high expectations and want to see high returns, fast. Working alongside them can be difficult, so communication is key.
- Venture Capitalist – Investors that seek new business opportunities through funding others’ ideas.
- Pros: They have a portfolio of companies they have started and sold, so they have strong ideas and can help guide you through growing the company.
- Cons: They seek the return of their investment when your company gets acquired or goes public – and they ask for a large portion of the amount.
- Ace Biz Funding – nationwide financial company that offers financial options to business owners.
- Pros: Five financial options including:
- Cash Advances
- Inventory / P.O. Financing
- Accounts Receivables
- Asset Based Lending
- Cons: None! Ace Biz Funding is a trusted lender that has been providing financial solutions to business owners for over 70 years! Your business loan application can be approved in less than 24-hours at a competitive interest rate, even with a credit score as low as 550. Learn more today at fastandEasyFunds.com!
After the financial crisis, banks made the ability to receive funding more difficult. Banks were lending to people who were under qualified before the financial crisis; everyone was being approved with money they did not have and loans they could not afford. This set the economy up for failure, leading to the recession of 2008.
People had a tough time growing their businesses because they could not get a loan or the interest rates were too high. Now, with rates at an all-time low (especially for people with high credit scores), it allows businesses to borrow money for purchasing inventory, real estate, machinery, etc. to grow.
Banks look for what is called “prime customers”. These customers have credit scores of 700 or higher. People in this category are the best borrows and get the lowest interest rates. Since 2012, they are calling it a “borrowers” market, because if you have a good credit score, then the market is on your side and you will easily receive funding if you apply.
While banks are still hesitant to lend to business owners who are not “prime customers”, Ace Biz Funding is not!
Ace Biz Funding is a nationwide financial corporation that understands the difficulties of being a business owner, and provides the working capital necessary to grow. Unlike traditional lenders, Ace Biz Funding has a 24-hour approval process and credit scores as low as 550 are accepted for our business loan options.
Learn more about the Ace Biz Funding’ financial plans; such as: Cash Advances, P.O. Financing, Asset Based Lending and more! Fill out our application form online or call 800-000-0000 today!
Every entrepreneur strives to achieve the same goal…business growth. As wonderful as reaching this goal is, it can become overwhelming when your business becomes limited in growth because of financial restrictions. This is when your business should look into business funding or some sort of working capital solution.
When you open a business, the startup expenses usually come out-of-pocket. But as the business thrives, using your bank account to fund the business is no longer realistic. It is crucial that you identify when your business has grown and needs funding.
At the beginning of the growth phase of your business, cash flow becomes restricted. As a business owner, cash is king, and therefore must be properly managed. Business cycles and seasonal fluctuations can result in negative cash flow issues if the business is busier during certain parts of the year.
Business funding can assist you in properly managing your cash flow to promote growth and expansion. Some examples of expansion projects that could lead your business into cash flow restrictions are: needing additional business locations, renovating your existing office space, advertising and marketing. It is important to seek cash flow funding when expanding your business, to keep from having negative balance sheets.
Some business owners believe that requesting cash flow funding means that you have to apply the money immediately to your new endeavors, but that is not always the case. Some businesses may receive cash flow funding as a cushion for business risks.
Having a ‘cash cushion’ can help your company prepare for any unexpected expenses for opportunities. Business opportunities come in all shapes and sizes, such as bargain shopping or new business ventures. The cash cushion can help you shop for inventory or equipment that is discounted and a great buy.
If you are a business that is growing and having cash flow restrictions, fast & Easy Funds can help! Our business finance specialists can provide cash flow funding for your business to help with growth. To learn more about our business loans and financing options, call 800-000-0000.
Businesses are constantly seeking financing solutions for all areas of their business. Kick off 2015 with new equipment and inventory to help your business grow.
New business equipment can help increase productivity, lower the cost of manufacturing, and even reduce the energy necessary to produce your product. Thanks to Ace Biz Funding Loans’ financing solutions, many of our clients have jump-started the New Year with new equipment. Some industries that have recently purchased new business equipment are: lighting manufacturers, fitness centers, electric contractor, and a hardware importer.
If your business is not capable of upgrading its equipment or inventory, consider Ace Biz Funding’ Bank Lite Loan Program. Businesses can receive anywhere from $75,000 – $350,000 to purchase new, replacement business equipment or increase their existing inventory.
The Bank Lite Loan Program by Ace Biz Funding has low monthly payments, making your new business equipment affordable. We also offer no pre-payment penalties, so you can pay off your new equipment purchase early!
Bank Lite loans are typically 3-5 years in duration, similar to a traditional lender, and with our same-day approval process, upgrading your business equipment has never been easier. No collateral is required for Bank Lite loans at Ace Biz Funding.
To learn more about Ace Biz Funding’ Bank Lite loan program, or to apply for financing solutions contact 800-000-0000 today!