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.
Angel Investors vs. Venture Capital: What's Right For You?
by Gary Honig Wednesday Nov 25, 2009It should be noted there is a distinction to be made regarding equity investors. Knowing the difference between angel investors and venture capital is critical to working with and marketing to them.
3 Essentials for Landing a Business Loan
by Gary Honig Monday Nov 23, 2009The traditional three Cs of Credit -- character, capacity and capital -- provide a good basis for evaluating a loan applicant. Character always refers to the ability to handle the day-to-day obligations and responsibilities of a business. Capacity is the ability of a company to produce revenue to offset its growing obligations. Capital is the ability to conduct business as usual even when there is a shortfall.
How Factoring Can Help Fill The Credit Void
by Gary Honig Tuesday Nov 17, 2009The overall misconception about factoring is only companies in dire consequences would consider using one. In reality this could not be further from the truth. Today’s factoring companies are sophisticated enough to know your financial situation. If it appears that a potential client is heading into bankruptcy or liquidation, or has a significant tax lien against it, the factor (a lender) will not finance that client. Rarely will a successful factoring company fund a badly mismanaged business. These are some examples of why businesses use factors:
Improve Your Borrowing Perception
by Gary Honig Sunday Nov 15, 2009One of the many variables that a business owner must contend with is the perception others feel about their company. The perception issue can be manifested on multiple levels with each having impact on the bottom line. For example, if the outside appearance of a retail store location is not properly attended to, the results can have a devastating effect on the foot traffic that is considering patronizing the establishment. Obviously we all would pass on a store that has trash littered about and poor uninteresting signage.
