There was a time, not too long ago, generating capital through venture capital funds was the most viable option to take for growing businesses. But, over the last few years more independent business owners have been taking advantage of a stronger financial stratagey in 2012: Microfinancing.
Despite the fact that the volumes change by lender, nearly all Microfinancingloans are under $100,000. Based on a newly released survey in Entrepreneur-Magazine, non bank loan providers such as the SanFrancisco Bay Area’s Opportunity Monetary fund provide financial loans that on average are around $8,000. And, even more shocking is the fact that the same lenders say that the companies they give loans to have a survival rate that is more than twice the nation’s average with a repayment rate about comparable to standard banks.
In part, Microfinancing as a general practice has been increasing as many banks continue to struggling to serve the requirements of small business owners.
Experts in microfinancing believe that businesses who Microfinance do better than business owners who have went the route of traditional banks or charge cards as a result of a wide variety of factors such as more thorough screening. We know Microfinancers such as neebo capital make the extra effort to better know business owners individually, a practice which is not normally employed by traditional banks.
In addition, Microfinancing is often made in a group setting where business owners support one another and are also financially responsible for each others loans.
Moreover, smaller scale financial loans help the entrepreneur or business owner stay on target with their business and not as likely to get caught up in over extending.
For those business owners interested in microfinancingt, visit neebocapital.com and speak with one of our specalists…. we’re business owners too.. we understand cash flow issues, and solutions.
Our Intern Manny asked me to write a blog explaining to you, business owners ‘how factoring can grow their business’ So I am doing just that. This article was created with you and Manny in mind.
To start I need to say the economic crisis of ’08 has impacted us all, in regards to cash flow payment terms have been getting longer. Customers that would once pay in thirty days are now demanding 45 days to pay.
Clients that once paid in forty five days are now demanding sixty – many even go so far as demanding seventy or eighty days to pay.
This creates a serious problem for a lot of smaller businesses since many are not able to manage to wait that long to get paid. And Because of this, many businesses are forced to turn away these clients, or turn away new opportunities to generate business. For many, this makes a bad situation more shocking.
As a business owner you need to understand you do have options to combat these problems. Neebo capital.com have over 40 different lending options and we lend anywhere from $5k to $10 million revolving. However in this situation your best option would be factoring invoices.
Factoring invoices speeds up your income through a factoring company like Neebo capital.com and reduces you having to wait until 90 days to get paid by customers. Our factoring company gives up to 90% your invoices upfront, and the remaining 10% when the invoice is paid, minus a small fee (typically around .59 – 1.5%). as soon as your customer pays the invoice we give toy the remaining 10%
To make this process work effectively, you approve the transaction with us neebo capital.com, the factoring company before hand, after which you make the sales to your customer.
As soon as you carry out the work, you can invoice your customer and hand over the invoice to us, the factoring company. This would provide you with the immediate advance while Neebo Capital.com holds the remaining 10% of the invoice until it is repaid. Ideally by using this process repeatedly you grow your business by taking on new clients that you could not have afforded previously.
Being approved for factoring is more or less easy – at least in comparison to other forms of business financing methods. Take the time to fill out our short for on Neebocapital.com for a instant quote. There is no obligation.
Welcome to our Blog, this article is about payroll factoring, and the advantages/ tips of factoring your invoices to meet payroll.
On the list of effects of the recent recession is this : companies have turn into more guarded and conservative with their cash flow. One example is, lots of large companies are preserving cash by paying their invoices more slowly. In turn, it’s affected smaller companies who rely on steady predictable cash flow to be in a position to meet their obligations. Likewise, smaller companies are doing the same thing and trying to pay their invoices slowly as well. Ultimately, everyone’s cash flow is being affected.
The issue with this is that many small companies live invoice-to-invoice and a delay in invoice payments can quickly send their finances into trouble. And since few small companies have any meaningful cash reserves, a delay may effect their ability to pay suppliers – and more significantly – their ability to meet payroll. Missing payroll can have substantial negative effects that could ultimately lead to the closing of the business.
Your first line of defense to avoid a cash flow absence is to build a cash reserve. This can be easier said than done because most small businesses don’t have the means to build a cash reserves. When you can build a cash reserve, your company will be in a better position to weather the inevitable storms that will hit your cash flow. If building a cash reserve is not an option, then you should think about using a business financing solution that can allow you to cover payroll and other expenditures if things get tight.
Invoice payroll factoring is a business funding solution which might be used to correct cash flow issues relatively quickly and with out the hassles associated with standard financing. It works by repairing the problem at the source. It provides you a cash advance for your slow paying invoices, providing the liquidity you need to meet payroll and other crucial expenses. With an invoice factoring solution you can get rid of the uncertainty of client payments, permitting you to obtain a more predictable cash flow.
Among the advantages of factoring is the fact the most crucial thing you need to qualify for this type of financing is solid commercial customers. It’s ok if your customers pay slowly and gradually – provided that they pay dependably. Besides from this, your company needs to be free of legal and tax issues. And factoring can be deployed fairly quickly – usually in a week or two.
An additional advantage of factoring is that it’s dynamically tied into your sales. This means that it can be increased easily as your sales increase, provided that you are invoicing credit worthy customers. This makes invoice factoring the perfect solution for small companies with good prospects that are hindered by cash flow problems.
Visit NeeBo Capital today!