Collateral Is Key to Protecting Your Access to Credit
by Gary Honig Friday Mar 12, 2010Business owners who are operating revenue-driven companies often turn to outside sources of capital when looking to grow faster. Either a company can sell shares (and shared ownership) to raise capital or they can borrow against collateral. Collateral usually means some sort of tangible asset such as equipment or account receivables.
What's Best for Your Business: Debt or Equity?
by Gary Honig Sunday Feb 28, 2010Deciding whether to go after debt capital or an equity investment usually has less to do with the current economic climate than it does with the company's business model. What is happening in the economy only means a stronger position is needed when going after these types of capital.
Some Myths About 'Factoring' as a Financing Tool
by Gary Honig Thursday Feb 25, 2010Often I hear about the perception by business owners who have never used invoice factoring that accounts receivable financing will somehow have a negative reflection on their business (to find out more about how factoring can help businesses, read "When Credit Is Tight, 'Factoring' Can Help." Unfortunately, this is a misconception based on having never utilized receivables financing.
Beware the Independent Contractor Trap
by Gary Honig Tuesday Feb 23, 2010You may not have noticed in the news, but the use of independent contractors by companies looking to lower labor costs is becoming a hot item. This is where a company foregoes payroll tax payments and just hopes the non-employee will pay his own way.
When Credit is Tight, 'Factoring' Can Help
by Gary Honig Monday Feb 8, 2010There are many types of commercial financing available to business owners. The most notable would be a term loan or line of credit from an institutional bank. But due to current economic conditions, banks may be unable to provide financing to certain businesses. Luckily, business owners are turning to an alternative for working capital called “factoring.”
Stimulus Checklist: Does Your Business Qualify for Loan Aid?
by Gary Honig Tuesday Jan 12, 2010The stimulus plan created for small businesses is known as the America’s Recovery Capital — or ARC — loan program. With $255 million of funds, it is geared to help businesses who have an existing loan with their loan payments. Here's what you need to know about ARCs:
Customer Payment Plans: The Difference Between Milestone and Progress Payments
by Gary Honig Monday Dec 21, 2009Whenever a business offers payment terms to their customers — they become a “lender" of sorts. The customer owes for the work, and the business is waiting for payment, essentially a business loan. There are things a business should note when offering terms that may bring beneficial results in the future. If a company has a strategic capital plan and the intent to raise outside capital, then knowing what makes the transaction attractive may make all the difference in securing capital. Certainly with invoice factoring, this holds true.
3 Questions You Need Answered Before Seeking Capital
by Gary Honig Tuesday Dec 15, 2009When talking about finding capital for a business, every pitch needs to be simplified to three very basic points. All additional documents, presentations and campaigning should backup these central questions:
7 Ways to Be More Attractive to Lenders
by Gary Honig Thursday Dec 10, 2009It’s always said that access to funds is the lifeblood of any company. Going out and securing outside financing to help grow a business is an important step in the life of an emerging organization. Keep in mind, the process of commercial borrowing is best done in preparation for needing the capital, rather than when the request is made in a dire situation. Here are some necessary tips to keep in mind when preparing to seek a loan:
Are Your Lines of Credit Killing Your Business?
by Gary Honig Wednesday Dec 2, 2009In business, access to capital at all times is crucial. Being locked out of obtaining working capital can break a company. Today, in this current economic climate, qualifying for credit from an institutional bank is tricky. There is no uniform credit culture among banks anymore, at least for the time being. Some banks are lending others are not. But in some cases securing a line of credit can become an insurmountable hurdle blocking the way of explosive growth.
