Can't Get Venture Capital Financing? Look at These Alternative Options

By: Marco Terry
Submitted: 2007-01-17 11:50:58
Print this article | For publisher | Social Bookmarking
Rating:
 

Many business owners try to finance their growing businesses by going to venture capital or angel funding groups. Although both financing options provide a great way to finance a business, they are usually hard to qualify for. And furthermore, they all require that you give up some business equity in exchange for funds. That, needless to say, can be a very steep price to pay.

There are some business financing alternatives that can allow you to finance your business, almost as effectively, without having to give up any equity. As opposed to venture funding or angel funding, these options are easy to qualify for and do not require the endless documentation and due diligence that venture money requires..

However, these can only help you if you meet the following criteria:
1. Your business is established and has commercial (not consumer) clients
2. Your business invoices between $40K and $900K per month

These alternatives will help you if:
1. You need money to meet payroll, pay rent or pay supplier
2. Your customers pay you in 15 to 60 days
3. You need (or wish) your customers to pay you sooner

Your first option is called factoring (also known as invoice factoring). Factoring is ideal for businesses that cannot afford to wait 15 to 60 days to get paid by their clients. Factoring provides you with financing that is tied to your invoicing. Basically, the more your company invoices, the more financing you qualify for. This enables you to grow your company – many times exponentially – without having to give up equity.

Your second option is called purchase order financing. It works well for re-sellers, distributors, traders and wholesalers. Purchase order financing is ideal for business owners that have a large purchase order in hand, and who cannot afford to pay their suppliers to deliver the product. PO financing enables you to get a letter of credit, backed by the financing company, to pay your suppliers. This allows you to deliver on the purchase order and effectively make the sale. Usually, very little – if any – of your money is required for the transaction.

Both alternatives are easy to qualify for, take days (or a couple of weeks at most) to set up, and when used correctly allow you to grow your company exponentially.

About Commercial Capital LLC

We specialize in business financing. We can provide you with a letter of credit, factoring, invoice factoring and purchase order financing. For a free quote, please call Marco Terry at (866) 740 1922.

Article source: Expert Articles

Most Recent Articles in Venture Capital category

  • Where is the Clean Tech Jackpot? - By: Glen Grant
    It seems every week, if not every day, a new company is heralded as the next revolution in clean technology. Like gold prospectors a hundred years ago, the race is on to find fortunes in the emerging clean energy sector, which everyone agrees must be the future. But what does that future look like? What's a venture capitalist to do?
  • A Joint Venture Can Produce a Lot of Earnings for You - By: Wazir Singh
    It can take your business some place it's never been. In addition, nothing that you own will be placed at risk and you don't even have to spend a cent! If you're going to do a Joint Venture, check out the heavy hitters first. Go straight to the top. Make an approach to them for a piece of the big time action.
  • JV Is a Proposal as Mature As Time - By: Kanwaljit Kaur
    The dictionary defines 'Joint Venture' as a legal entity formed between two or more parties to undertake economic activity together. The parties agree to create a new entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. The venture can be for one exact project only, or a continuing business relationship such as the Sony Ericsson joint venture.
  • Endorsement of Joint Venture - By: Manita PD
    Here are many motives to encourage JV promotions - there is lots of money to be made in JV promotions. As long as you do it the right way. Reasons to hearten JV plans: . No purchaser Service or inventory . Admission to unlimited stock.
  • A Joint Venture Combination Is Like Partnership Business - By: Praveen Kumarii
    A Joint Venture Agreement is a document that sets out a type of partnership agreement put together for some specific purpose. The agreement spreads the risk attached to the project among the various parties to the agreement as well as details the sharing in any of its success and profits.
  • An Undisclosed About Doing Joint Ventures - By: Ajaay Kumar
    In the summer of 1954, four hundred wealthy businessmen were invited to hear about a joint venture proposal. Hands were shaken, coffee was served and for the next few hours, behind closed doors, P & L statements likely the future of how this venture would play out.
  • JV Deals For Fantastic Profit - By: Manish Kumar
    Imagine this: 1. You don't have a single cent in your account. 2. You don't have enough marketing skills. 3. You don't have a mailing list of hundreds, if not thousands, of potential customers. 4. You don't have any money - at all - to fund the creation and promotion of a digital product online. 5. You don't have the brand name that commands credibility and immediately increases consumer confidence.
  • 19 Crucial Factors You Need to Consider - Joint Venture - By: Sumit Sharma
    Are you taking this seriously? Joint ventures are a big deal. You are sitting on a GOLD MINE. If you know that you're not able or willing to commit 110% to pulling off a successful JV - then do everyone a favour and call it off until you're in a better position.
  • Avoid Legal Hassles By Putting Your Joint Venture In Writing - By: Sumit Sharma
    So you're going to take the plunge and start a joint venture. Excellent! As long as you consider the details and think it through as if it's a whole new business, your new venture could mean exponentially greater profits for you!
  • Joint venture is like a marriage - By: Sumit Sharma
    A good JV can create fortunes. It can bring together products and services, free media attention, and resources to cut down the amount of time needed to spend promoting and marketing. There are four players in the JV world, each works together to create a win-win situation for all.