Working Capital Options Without Taking On Debt

For new and small businesses, getting access to working capital can be a challenge. Banks have prohibitive requirements based on credit ratings, and take a long time to process, which renders the endeavor moot for time-sensitive needs. Similarly, entrepreneurs might not be in a position to take on additional (or any) debt, which makes the search for working capital all the more challenging. Fortunately, the world of commercial finance understands the needs of the business owners, and can offer debt-free solutions to give business an infusion of working capital quickly and efficiently.

Consider A Factoring Services

Factoring services allow business owners to monetize their open invoices for working capital. Once submitted, invoices can be converted to cash within 24 hours. Factoring places no debt on the balance sheets, and the initial agreement can be arranged in 48-72 hours. There are no credit checks run on your business, and because revenue is coming in from one source (the company offering factoring services), the accounting process is streamlined so you can focus on growing your business, rather than chasing after payments from customers.

Try Using MCAs

Merchant cash advances (MCAs) give businesses the working capital they need without placing debt on the balance sheets. Unlike traditional bank loans, MCAs do not have rigid payment schedules or prepayment penalties, which gives business owners a lot more flexibility. MCAs are great working capital solutions for businesses about to launch new products, hold big sales, seasonal businesses anticipating a high volume of sales, and companies experiencing growing pains.

Asset-Based Lines Of Credit

Asset-based lines of credit are structured around the value of real estate, equipment, and receivables owned by your business. This revolving line of credit can be drawn upon as needed, and has the added advantage of growing as the value of your property increases. Because this is a line of credit, there is no debt placed on the balance sheets, and is ideal for small businesses that need an extra funding source without resorting to taking on debt through bank loans.

Need Working Capital?

If the above options would work for your business, or if you would like details on other financing solutions, call The Lavan Financial Group at 203-308-4546. We specialize in getting business owners the financing they need without prohibitive requirements or the red tape involved with applying for traditional loans. If you want fast, budget-friendly financing, call Lavan today.