No venture, regardless of its size, is safe from lean
seasons and other challenges that go with business operations. A
company is bound to need a little help sometimes, especially when
transactions are few and far between and expenses are piling up.
Businesses may find the proverbial silver lining in one of the
following financial options that are always available to them:
First is equipment financing, a service offered by
several lending outfits to assist businesses that need new machinery
to boost production. Under this financial alternative, how much the
loan will be depends on the auction value of a borrower’s assets.
For example, a business owner’s old tractor will be put as
collateral for the loan and could be seized if he frequently defaults
on payments.
Another option for traders with bad credit is factoring.
A loan agency will look at the books and see if the troubled company
seeking the financial aid still has promising “receivables.”
Credit reports, invoices and other documents will be likewise
checked. A funding company usually approves loans of companies with
clients and customers that are good payers.
Merchant cash advances, in the meantime, are loans that
should be paid in less than two years. These work best for small
businesses that cannot get bank loans. The cash-strapped firm is
given financial aid if it will authorize the lender to collect from
the former’s daily credit card sales.
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