How do you secure financing for your small business when the bank says , “No:” Here are five things small business owners need to know about financing.
Financing guru Kris Roglieri has lent more than $3 billion and put more than 400 entrepreneurs in business.
When business owners find themselves turned down by the banks, America’s small businesses struggle finding the capital they need to grow. Financial expert Kris Roglieri says contrary to popular wisdom, capital is widely available for the backbone of the U.S. economy.
“With the first quarter of 2014 behind us, many businesses are looking at their business plans and determining where and how to invest in the growth opportunities they see in Q2 and beyond,” said Kris Roglieri. “Here are some alternatives on financing that business owners should be considering when banks say, ‘No.’”
1. Factoring allows a business to turn its accounts receivables into immediate cash . It’s a great option to manage cash flow without taking on more debt or waiting for clients to pay, 30…60…90…120 days later.
2. Purchase order financing hinges on the financial strength and creditworthiness of the company that has placed an order with a particular business, and not on the business itself. This makes it a viable option for new businesses and those with only average credit.
3. Sale-leaseback equipment financing can be a winning solution when businesses face working capital and cash flow challenges. Structured properly, this type of financing can be a permanent solution for a temporary business challenge.
4. Cash advance financing can be an excellent cash management tool for restaurants, retailers and business-to-consumer companies that generally have more limited financing options because they do not have wholesale invoices to factor or hard assets to borrow against.
5. Contract finance, can provide working capital to expand operations by monetizing contracts that a business has with another company. It is an effective way for smaller businesses to fund their expansion as they enter into new agreements with customers.
Kris Roglieri is an experienced financier, entrepreneur and educator. He founded a company that trains entrepreneurs to start finance companies (Commercial Capital Training Group) in addition to funding more than $3 billion in loans through his own commercial finance companies, Prime Commercial Lending and Durham Commercial Capital.