Factoring is also an interesting opportunity for businesses that have many accounts receivable, but are in urgent need of quick cash. Sometime it happens that your customers need Net 30 or Net 60 in order to pay their bills, but you are in urgent need of cash. This is where factoring can come in handy. There are some businesses that will agree to buy your accounts receivable, and provide you with a percentage of the account upfront. Obviously, when the invoice is paid they will keep the full amount. In fact, the percentage of the account that you will receive will depend on the risk and the credit histories of your customers.
Other Funding Resources
The following is a list of resources that can help you to find the best funding possibilities for your business:
Minority Business Development Agency of the US Department of Commerce (mbda.gov) – This is a resource specially dedicated to minority business owners in order to help them start their businesses. There are several support systems that are available, such as benefits in securing business from government agencies. They will also direct you to appropriate resources where you can obtain grants to develop your business infrastructure.
Prosper.com – This is a great resource for those who are seeking new investors to input funds in their business. Basically, you need only create a profile based on the amount of money you need, and on your financial requirements. If an investor agrees to fund your business, you then provide your bank information, and agree to repay the loan over three years.
Nvst.com – This is the site for all those seeking information on venture capitalists.
MicroEnterpriseWorks.org – This is the place if you are looking for micro-loan programs. The site proposes numerous resources and information pertaining to this matter.
CircleLending.com – This is a great resource for a company that prepares documents between relatives and friends.
Myspace.com – Many people do not realize it, but Myspace provides a classified section where you can market your products and services.