Debt Free Financing Solutions For New Businesses
One of the biggest challenges facing new businesses is how to get working capital without increasing liabilities on the balance sheets. Banks and other traditional lending sources are reluctant to lend money to new businesses, and if entrepreneurs do meet the high requirements, the terms and rates are are counter-productive to accumulating any revenue, because it is all going toward paying off debt. For these reasons and more, we have compiled a short list of debt free financing solutions for new businesses.
Merchant cash advances (MCAs) offer new businesses an infusion of working capital with flexible payment terms. MCAs can be used for anything from paying vendors to upgrading equipment, and everything in between. A merchant cash advance is a debt free financing solution which can be used by any business capable of accepting credit card payments from customers. The reason for this is that MCAs are repaid electronically from a small percentage of every credit card transaction. This payment method offers a lot more flexibility than the strict payment schedules of traditional bank loans.
Debt Free Financing On Receivables
For new businesses with open customer invoices of 30 days or longer, there is a debt free financing solution to eliminate waiting on payments in order to get businesses the money they are owed within 24 hours. By financing receivables, businesses will be able to streamline accounting and accumulate working capital for improvements and growth.
Purchase Order Financing
Purchase order financing is designed for businesses with unusually large customer orders to fill. This debt free financing is an advance of working capital needed to cover the cost of large orders. Once the order is completed and the invoice is created, the lender will deliver the final bill to the customer. Once the customer pays in full, the lender will subtract the amount of the advance (plus the agreed upon fees), and deliver the rest to the business as revenue. Entrepreneurs can use this type of financing to take on larger orders and grow their operations quickly.
If your business could benefit from any of these debt free financing solutions, or if you would like to explore other funding options, contact Vantage Commercial Capital at 913-543-4242. Our team of professionals will work directly with you to structure affordable financing around your budget and business goals.