ACCOUNTS RECEIVABLE FACTORING COMPANY
An accounts receivable factoring company can provide many businesses with financial assistance. The factoring process is a simple solution and has been used for a long time in handling financial situations.
Factoring is simple. A business sells existing, uncollected invoices to a third party known as a factor in return for immediate cash. Depending on the type of factoring agreement entered, collections on the factored invoices might remain as a responsibility of the business or it may become the responsibility of the factor. Factoring allows a business to collect full payment on a sale before the collection period has passed.
While factoring requires a sale to be made first, so the business has an outstanding, uncollected invoice to factor, the Rapid Capital Funding merchant cash advance program allows a business owner to cash-in on their future sales. While a merchant cash advance is similar to factoring, in many situations it is an alternative to a small business loan.
An adjustable rate is a specific type of interest rate.
When seeking business funding or any type of traditional financing, comparing interest rates is very common. Interest rates make a big difference in the payment amounts and overall costs for business loans and are usually based on the prime rate set by the Federal Reserve.
Fixed rate and adjustable rate are the two primary types of interest rates. Fixed rates are interest rates set at the time of inception and always remain the same throughout the length of the loan or financing.
Like fixed rates, adjustable rates are set at the time of inception, but with an adjustable rate, the rate is slightly lower. Both parties usually agree to set this lower rate, knowing that it will later adjust to a fixed percentage over the prime rate.
The advantage of a merchant cash advance is that there are no interest rate charges.
There are many alternative financing methods that are available to small business owners who do not want to rely on the traditional sources, such as banks, for funds.
Small business owners often have a hard time meeting the strict credit and collateral requirements set by most lenders to qualify for any form of traditional business financing. Such restrictions cause for business owners to seek an alternative to traditional financing.
Traditional lenders financing is not the only way for a business to get money. Rapid Capital Funding provides an alternative to traditional financing for many different types of small businesses with our business cash advance or merchant cash advance programs. We will purchase a small percentage of your future credit card sales until the payback is completed and give you the cash advance your business needs now!
Business owners often lack the necessary credit scores and collateral to secure financing. Lenders look at the risk involved in financing, and that is going to be determined according to your credit history. Unfortunately, individuals with a history of bad credit are more likely to have a late payment and/or to default entirely. Traditional lenders are strict and will usually reject applicants unable to meet the minimum requirements for both credit scores and collateral.
Our merchant cash advance program has no personal collateral requirements. Credit scores are reviewed in the qualification process; however, a credit history does not hold the same weight in qualifying for a merchant cash advance. Traditional lenders are limited by a set of rules and regulations. A merchant cash advance is the financial alternative because it does require immaculate credit and has much more flexibility.
It is important for business owners to know about alternative financing and all other financial options available. Business owners have to face many different financial scenarios and financing options such as a loan, lease or line of credit, which may not always work.
Alternative Funding is when a business gets money from a business cash advance, which provides reusable means to receive the working capital needed without the traditional financial resources such as a loan or lease from a private lender or bank.
Rapid Capital Funding provides businesses with alternative funding, allowing them to grow, purchase advertising, inventory, equipment or provide the cash for any of the business' financial need. Freedom from fixed payments, stringent terms, and other inflexible aspects of traditional bank loans, give more freedom and options to our customers to stabilize or improve their business.
At Rapid Capital Funding, we understand our customers and deal with many different types of business and needs. The benefits of our merchant cash advance program are the opportunity for your business to avoid traditional small business financing, a quick way to get money for your business and a simple, effective way to stabilize, improve and expand.
Business financing is when an outside resource is used to cover a business' financial needs. A loan, lease or lines of credit are examples of traditional financing options, but business financing may also refer to other financial alternatives. The most common elements in evaluating how a business may might finance or cover the costs of different initiatives include business need, available collateral, available down payment, time needed to repay or make payments and the applicants credit score. Out of the many factors to consider in comparing different financial opportunities, these items are the primary starting points.
When a business needs a large piece of equipment, several different financial methods may be available. Small business loans or a corporate credit line might help handle the costs, an equipment lease arrangement or a merchant cash advance. The cost and flexibility a business receives to secure the equipment may vary greatly depending on the financial solution. A loan, for example, can take months to arrange, which is usually not the case with a lease or merchant cash advance. Sometimes up-front money or collateral is required.
It is important for a business owner to know and understand all the different options and requirements to find the best financial solutions to the business' specific needs and situation.
Third-party resources used to cover business costs of anything from start-up expenses to closing costs and may include marketing, advertising, expansion, remodeling, equipment and more. Business financing will most likely come from a traditional lender like a bank or private investor.
The merchant cash advance program by Rapid Capital Funding provides qualified business owners with fast, easy access to working capital. The merchant cash advance is a simple financial alternative and is not a form of business financing. It is a much quicker process than a bank loan or other forms of traditional business financing with no up-front fees, personal collateral and with minimal requirements.
A merchant cash advance is a great opportunity for you to eliminate the burdens of traditional business financing and an easy way to get the cash your business needs.
A business loan is an arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest over a period of time. Usually, there is a predetermined time for repaying a loan, and generally the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk). Business loans can be used for many different business needs like marketing costs, inventory, and equipment and can often be a used to grow a business while protecting the existing cash flow.
The Small Business Administration (SBA) is a well-known business loan resource, while it does not actually offer loans, it provides a guarantee to the lender in a situation where the applicant defaults on an SBA-approved loan. The SBA guarantee makes it easier for a small or new business to receive financial help due to a smaller risk of loss for the lender associated with an SBA loan as opposed to other loans.
Once approved by the SBA, the business owner will be provided information on SBA approved lenders offering the financing. An SBA loan can be very beneficial to a small business, but the SBA requirements too often become a struggle for the business owners. It is very difficult to qualify for business loans from any lender, even those not connected to the SBA. The three biggest issues for business owners are that business loans will most likely require personal collateral, down payments and above-average credit scores, causing them to explore other financial options.
There are several different financial solutions available depending on the business type and need that would offer more flexible and faster results than business loans. Thousands of small business owners have found the merchant cash advance to be an effective alternative.
Business Receivable Factoring
Business receivable factoring is when a third party purchases are existing, uncollected invoices from a business at a discounted rate. In return, the business receivable factoring company gives the business money. The business receivable factoring company will get paid the receivables, as they are collected.
Business receivable factoring is often needed by businesses when there is a long delay (typically 60-120 days) between when they invoice their customers and when they collect the money. Many businesses sell products that allow customers 6-12 months to pay. This can create major cash flow issues for even the largest companies. Business receivable factoring companies have been around for many years because of the nature of how many companies extend terms to customers.
Rapid Capital Funding's merchant cash advance program has many similarities to business receivable factoring however the two are quite different and should not be confused. The biggest difference between the two is that business receivable factoring requires the sale be made before it can be originated. The merchant cash advance program is based on future credit card sales, therefore, does not require the sale to have taken place. With a merchant cash advance, a portion of future credit and debit card sales are purchased.
As difficult as it is to manage cash flow in your small business today, business receivable factoring can be a good way to manage cash flow.
Buying Out a Partner
Many businesses today are formed in partnership. Two or more people are joining together to invest and grow a business together. In some cases, partnerships go on forever until the business is sold to a third party. Unfortunately, this is not always the case. What often happens is one or more of the partners don't get along, therefore, creating an opportunity for the remaining partner to buy out the other partners
When buying out a partner, there are a multitude of factors to consider including how much the remaining partner is willing to pay for the other partner's interest. Will the buyout be a cash buyout or will payment arrangements be made over time? For the purchasing partner, he/she can often get the best price if it is a cash offer. This will entice the selling partner to accept the offer.
The single most important issue faced in buying out a partner is where does the money come from to allow buying out a partner? A merchant cash advance or business cash advance can be used very effectively in these situations. How does it work? It's simple...
The purchasing partner and the selling partner own a restaurant that processes $100,000 per month in credit card sales. Together they obtain a merchant cash advance for $150,000. The money is used to pay the selling partner for his/her interest. The purchasing partner then continues to operate the business and pay off the advance. This is a win-win.
The merchant cash advance in this example is used to buy out a partner. The restaurant continues to operate as usual only now paying down the business cash advance using a small portion of the credit and debit sales until it is completely paid off.
The credit and debit card sales of the business are used to obtain the merchant cash advance. The selling partner is happy because they receive upfront money, and the buying partner is happy because he/she doesn't have to come out of pocket money to make this possible. This is a painless process that involves both parties.
Are you looking for the cash to buy out your partner? Apply for a merchant cash advance today!
Cash flow is what powers and propels small business and is a measure of businesses financial health. By definition, cash flow is cash collected minus cash paid out. Often times small businesses struggle with cash flow because management because they may have accounts receivable or money owed to them that can take up to 120 days to collect. This can cause major cash flow problems for a business if not properly prepared. Other cash flow problems can occur during high growth periods when a business is spending money for advertising and equipment but is slower to bring in cash.
It is important for business owners to utilize all available resources to maintain cash flow. They need to stay ahead of their competition and always have access to working capital to maintain and grow their business. Many small to medium size businesses may not fit the mold for traditional banks and lending institutions. They may try to apply for business loans and get denied after a lengthy process just to learn that the bank doesn't understand how their business functions. This can be frustrating.
Rapid Capital Funding understands the cash flow needs of small businesses. We understand that good businesses need capital to run and grow their business. We work with many businesses that have a difficult time with traditional lending. Especially in our current financial crisis! We are able to provide the working capital a business needs to survive.
Our merchant cash advance program is a perfect way for you to balance and manage your cash flow. You can use the money from the advance however you want. You pay it back with a small percentage of your credit and debit card sales. If your business increases, you will pay it down quicker. If your business slows down then, you pay less. It's completely flexible and allows you to manage your cash flow effectively. Our merchant cash advance program is so good that 85% of our merchants renew their advances. This becomes a great resource for businesses to use.
If you are interested in learning more about how our merchant cash advance program works, click here.
The term small business can change by industry and country, region, etc.
In general terms: A small business is a business with a low number of employees that is not dominant in its field of operation. In America today, it commonly means having less than 101 employees.
Most small business must have a different of financial matters. This can be taken care of well with the income produced from the business; at times it is important for the small business (management) to go elsewhere for resources to receive capital. For the most part, the company's best solutions are that the owners to seek their opportunities.
Most financing means are one way that a small business may not meet their demands. Some methods are small business loans, leasing, and private equity, family, etc. These other methods require small business owner has a solid credit history, also a detailed business plan for eligibility. Interest rates are comparably not high. These loans may take months to secure. That is the deal breaker for most small business owners.
Small business owners may seek different choices for financial advice. There can be solutions like factoring accounts receivable or using merchant cash advances. Options like this can have a higher cost than a loan product, but there are some real benefits. Rapid Capital Funding will provide merchant cash advance to businesses that the owners have a credit score as low as 400, most common sources typically would not consider this unless a merchant's credit score was above 700. Merchant cash advances can happen in days, not months. Other services, such as how payments are made or how invoices are collected, will change based on the program the business owner chooses.
Small business owner know the challenges obtaining working capital, a good method is to research and do your due diligence. Merchant cash advances will help small business when used effectively. Every financial product is unique to the needs of your small business. Rapid Capital Funding is ready to meet your business needs. Call or email for a quick quote.
Small Business Loans
Small business loans can be received through banks and other financial institutions. Most people believe small business loans are issued from the government. The Small Business Administration (SBA) may offer backing to qualified loan products. When a loan and lender can qualify the criteria established from SBA loan products, the loan is allowed a guarantee of repayment by the SBA. That makes, "SBA loans" not as risky for lenders. However, most small businesses find that "SBA loans" are very hard to obtain.
Over the five million small businesses in America presently could use the capital that these products offer. Out of the approximately 9,000 lenders that do "normal" loans to big businesses, it is the small business owner often runs into trouble when trying to get "normal" financing.
Many small business loans have strict criteria to qualify. The lenders often want an exceptional credit score, personal collateral, and a large down payment to even review an application for a small business loan. That is why small business owners have a hard time with these guidelines. Most need the working capital but just won't qualify.
Most small business owners don't even know there are other options out there. Some of these options a can be easy and more conducive than small business loans.
Rapid Capital Funding has one of the best financial options out there, and thousands of business owners have successfully used it instead of using small business loans. Rapid Capital Funding clients know the variations between small business loans and merchant cash advances.
A merchant cash advance is not a loan product that is why it can fall under a different set of rules and covenants. Merchant cash advances are trying to look at the positives of small businesses, not the negatives, for example, future credit card sales, so the guidelines for qualifying are not as demanding compared to small business loans.
Rapid Capital Funding does not require a down payment or personal collateral for a merchant cash advance. Although, your credit score is looked at as part of the qualifying process, that fico score carries less meaning than it does in traditional financing. A bruised credit report usually an automatic disqualifier for small business loans, not the case with a merchant cash advance from Rapid Capital Funding. While it can take months to secure a business loan, a merchant cash advance from Rapid Capital Funding can be funded in less than four business days.
Although small business loans can work, small business owners need to know all of their options. By Knowing the benefits and restrictions of each financial product, small businesses should be ready to match their individual need with a solid solution.
Small Business Working Capital
Small business working capital is a standard accounting tool when a business' current liabilities are subtracted from the business' current assets. Current liabilities are debts or accounts payable owed and payable with a calendar year to. Present assets are typically liquid assets like cash or cash equivalents, inventory, etc. Working capital is the cash used to maintain the business' operations, like purchasing inventory, advertising, handling payroll, etc.
Small business working capital can be used as one measure to see how the business is succeeding in managing the cash flow of the business. This is used to measure debt tools that are being used to leverage and strengthen the financial health of the small business.
A small business can produce revenue to allow profits are used as working capital. Although that does not always happen. Most situations when a small business owner needs a third party to provide working capital used to change the daily income business.
Small business working capital usually comes from different third-party sources. The most typical would be banks or the bank loans backed by the Small Business Administration (SBA). Bank loans are one of the sources of working capital for small businesses; many small business partners have difficulty with the tight guidelines and limitations of financing small businesses.
One way for small business working capital is using a merchant cash advance. A merchant cash advance is not a loan product or type of business financing; it is more flexible and conducive to smaller businesses, and their needs. Most businesses who don't qualify for a bank loan or SBA assistance find it can get the money their business needs through a merchant cash advance.
To get more information on a merchant cash advance to increase your own small business working capital account, just click here for more information. If you are ready to take control of your business plans through obtaining small business working capital without the headache of traditional financing, we encourage you to get a per-qualification today.
Traditional Bank Loans
Traditional bank loans have a financial tool used commonly for today's businesses. With the right situation, this financial option is used with business owners to capture and feed the business, commonly used to stabilize inconsistent cash flows.
The demands of small businesses are broad. In some cases, traditional bank loans are not possible. Often the business owner's needs and the details of the business, traditional bank loans may not be viable. For these type of merchants, there are other options.
A popular way to get working capital utilized by small business owners is a merchant cash advance, or credit card factoring. A merchant cash advance is not a loan. Because of its ease, it appeals to large amounts of small business owners that need an option to traditional bank loans.
Traditional bank loans guidelines are high; they expect perfect credit history, secure collateral, and usually a large down payment. The whole process is very timely; much of the paperwork to complete is complex. The waiting time to get approved usually can take months. A merchant cash advance is different: personal collateral is not necessary, no down payment, the whole process is fast and easy, in some cases they can fund in 72 hours.
Traditional bank loans often must have a specific purpose; merchant cash advances don't put these restrictions. Merchant cash advances, Owner of the business is free to spend the money on anything as they need.
One significant piece for a small business owner to understand is that there is that a merchant cash advance is out there as an option to most small businesses. Any small business that is having trouble qualifying for traditional banks loans are encouraged to look beyond traditional financing and experience the ease, simplicity and benefits of a merchant cash advance.
Unsecured Business Loans
Unsecured business loans are loans that are not secured by collateral. Usually, lenders have only the business credit history and the owner's credit to rely on in deciding whether to offer the loan. Often, a lender will give unsecured business loans only to clients who demonstrate an exceptional ability to be current with all debt.
Many of Rapid Capital Funding's clients find their merchant cash advance the best and easiest solution. Increasingly popular with small businesses across the country are Merchant Cash Advance, or credit card receivable funding. Merchant cash advance providers rely on future credit card sales, and a merchant cash advance is a quick and excellent answer for many business needs.
A merchant cash advance is not a loan; it is a financial product that does not require personal collateral or an excellent credit history. A merchant cash advance is common and easy for most business owners than an unsecured business loan from a bank. The application process is quick and easy; the money can be in-hand in as few as 72 business hours.
Working Capital Factoring
When an operational small or medium sized business is seeking working capital, factoring is one course of action to research and thoroughly understand the various methods.
Factoring is when a business accumulates cash or cash equivalents. The business then sells the uncollected, pending invoices to a third party a.k.a. "a factor". The factor pays the business a discounted percentage of the face value of the invoices, which occurs quite frequently. The business is then able to use the cash given for any purpose. Due to the type of factoring agreement a business has, a responsibility to gather the invoices could still be on the business, or it could be assumed by the factor.
Small business owners tend to access working capital factoring for a select amount of reasons. All businesses need cash flow in order to stay afloat, but a lot of times a small business owner might battle with the demands and restraint of bank loans. Factoring functions under a different set of rules and arrangements, which makes it easier for many businesses to use this strategy of financing.
While factoring is one option for receiving a working capital, there may be other solutions suitable for overcoming cash flow strains within a small business. One option is our merchant cash advance. A merchant cash advance is comparable in some ways to factoring, but these two options should not be mixed up.
Like factoring, a merchant cash advance does not require exceptional credit, it has no restrictions on use, and it can be presented and arranged almost instantly. While factoring needs a sale to be made to make an outstanding, uncollected invoice, a merchant cash advance will only be based on your future credit card sales volume is the basis of a merchant cash advance.
If you are seeking for working capital factoring, we urge you first to check out a merchant cash advance. The difference of what you could be saving means more money for you and your future success!