Non-Bank Funding options - dealing with Cashflow problems
by mrhelpful, Contributor
- Created: June 18, 2010, 9:02 am
A few other posters have mentioned needing to find funding for their business operating costs or for toher reasons, but have been unable to secure funding from a Bank.
There have been some great replies and I thought it might be a good idea to start a thread on alternatives to bank funding that people have used so others can refer to it for inspiration. There is a great resource already on these forums here:
Two quite popular options from here are Equity Capital and Angel Investors, both of which involve giving up a share of your business ownership in exchange for cash. Given that the alternative is often a failed business anyway if you can't arrange funding lines, these options can make great sense.
another excellent suggestion is to look at Factoring. this involves selling your accounts reciveable to a factoring company. they pay you a proportion of the accounts total value, up front immediately and then go about collecting (and keeping) the accounts from your customers. this means you get less than the total value of the accounts, but you get it now, and don't have to worry about chasing tardy payers or worrying about bad debts.
This means you can pay your bills on time, and don't have to worry about getting a bad credit rep or late payment penalties.
I'd really like to hear from anyone whose either used private investment or factoring services - can you please post your feeback on the services here and how they've worked for you?
Also if anyone has other innovative cashflow or funding solutions, please share them with the community here.
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