Christian Business Financing Loan
Attaining a Christian business financing loan can breathe life into a start up ventures and established businesses alike. Whether pursing funding through the Small Business Association, bad credit loans, an open line of credit, or equipment leasing plans, most businesses need a financial shot in the arm to keep things running smoothly. SBA loans have specific benefits such as competitive interest rates, no prepayment penalties, or balloon payments. Cash flow is the life blood of any company. The loans are often available through commercial lenders and are often guaranteed by the SBA. Businesses that have been damaged or destroyed by a natural disaster can also attain funding that is specifically geared toward helping them get their company back on its feet again. Even individuals with bad credit can pursue the dream of owning their own business. Loans that cater to those with bad credit may not have the most competitive terms and rates available, but by giving borrowers a chance to live out entrepreneurial dreams, these funds can help new ventures find a spot in the marketplace. Another method of attaining a type of business financing loan can be found in equipment leasing programs. Equipment, supplies, and technology can be major expenses. Choosing to lease rather than buy can be a smart way to meet needs while keeping cash flowing and available.
SBA funds can provide the answer for anyone who is in search of a business financing loan. For the lender, the governmental guarantee that comes with these funds removes much of the risk involved in lending. Eligibility for this funding will hinge on several things. Of course, the ability to make repayment is very important. In addition to this, there are several other factors that will be considered. The management skills and character of the applicant are two important criteria. There are certain standards regarding the company's size as well. Only for profit organizations are eligible for these funds. The type of company that is applying as well as how the funds will be used will also be taken into consideration. If there are funds available from other sources, this can also be a determining factor. Businesses cannot be dominant in the marketplace and cannot be associated with any kind of gambling or media concern to receive this funding. Processing on this kind of business financing loan can be relatively quick. Approval and completion of the loan can come as quickly as a month an a half after initial application. Many times, government programs have the reputation of requiring unnecessary red tape, but these loans will generally not require any more paper work than standard lending options. The number of employees and the amount of yearly sales will be used to determine the size of the company. SBA loans are only available for small businesses.
In the aftermath of a natural disaster, many businesses find themselves unable to operate, or are forced to operated at a diminished capacity. Thanks to the availability of a business financing loan that caters to companies impacted by natural disasters, these companies can repair damages or rebuild from the ground up if necessary. In addition to loans, there are also grants and other types of funding that may be available. When a local community has been declared a disaster area, getting things back to normal as quickly as possible is important. In addition to funding for companies, there may also be financing available to cover the cost of repairing or rebuilding a home, or to cover the loss of property for individuals who rent. These funds will kick in after any applicable insurance payments are made to the business or the individual. Whatever aide may be needed, this unique type of business financing loan can help both families and companies recover after a devastating natural disaster. With hard work and dedication, a creative entrepreneur can build a successful business. The virtues of hard work and diligence are mentioned in the Bible. "The slothful man roasteth not that which he took in hunting: but the substance of a diligent man is precious." (Proverbs 12:27)
Hopeful entrepreneurs who have less than ideal credit ratings can also find a business financing loan. When a new venture has little in the way of a credit history, obtaining necessary funding can be difficult if not impossible. Organizations that specialize in loans for those with a spotty credit history can help. Starting a new venture can be very costly. Maintaining an existing company while attaining the funds that will help it to grow and expand can be difficult. Lending terms tend to be a little less favorable for those with poor credit and this is true of business loans as well. Some form of collateral or even a co-signer may be necessary. Of course, the hope is that the venture will be successful, enabling the owner to pay back the debt and rebuild a good credit rating. In addition to standard loans, cash advances and lines of credit may also be available.
Attaining equipment and supplies can be costly yet very necessary. Leasing this equipment rather than taking out a business financing loan can be a wise move. Leasing will yield many important benefits including increased cash flow and the opportunity to keep current with technology. Both new and used items are often available. Office furniture as well as computers, printers, copiers and software can frequently be leased. The opportunity to purchase the equipment or furnishings out right after the lease has ended may also be available.
Christian Working Capital FactoringWorking capital factoring, one of a number of cash flow solutions for businesses is offered by many online companies. Factoring is a positive cash flow device to help companies who suffer through tough stretches each month with bills rolling in but not accounts receivables. This could be akin to the family running out of grocery money six days before payday. With a business trying its best to maintain a healthy financial statement and avoid late payments that can show up on a credit history, working capital factoring can be a real solid answer to this problem. While some businesses may flinch at some of the conditions for participation in such an agreement, others have found it to be a real boon for business.
Let's take the Runny Watercolor Paint Company, purveyors of watercolor paints for elementary students that positively will not dry under any circumstance. Art teachers all across the nation love the company's paints which enable the student to portray, shall we say, perpetual action scenes long after taken from art class to freaked out mom. The RWC has plenty of orders for their paints, but has a sixty day invoice policy which enables the paint company to have a friendlier customer relationship. The problem arises when the RWPC is awaiting payment on these sixty day invoices and sometimes the situation is so dire that the accounts receivable department actually has its own golf tournament two working days of every month. But the company continues to receive bills for the many shipments of products needed to make its runny paint. The company's creditors, not nearly so interested in having really good customer relations have only thirty day invoice turnarounds. The result is a company president who is suddenly crying for working capital factoring.
Working capital factoring is the action taken by a factor, which can be an individual or a company of investors. When the factor is an individual, it will be a wealthy investor looking for the opportunity to not only make money, but may even be open to having part ownership in a cash strapped company. This investment device is not investment in land or real estate, but rather in the actual cash business of a commerce enterprise. It is always the nature of the financial world to worry about the future, but the bible reminds us that Christians need only look at nature to see how God takes care to dress the flowers so splendidly. And since His children are that much more important than flowers Jesus remarked, "Take therefore no thought for the morrow: for the morrow shall take thought of itself. Sufficient unto the day is the evil thereof." (Matthew 6:34)
Here is how working capital factoring works. The RWC bills thousands of school districts each year for its products. Hundreds of invoices go out each month and they are like money in the bank, but just not yet deposited. A factor will front the RWC sixty or seventy percent of each billed invoice and upon arrival of that payment will be repaid plus a commission. Suddenly there is money for the company to not only pay its bills, but also to craft a new marketing plan for schools overseas. Making the cash flow turn from molasses like to ocean like can happen with an invoice factoring plan.
There are a plethora of reasons why working capital factoring is attractive to so many businesses. The foremost would be the avoidance of having to seek a loan for a cash reserve. The last thing many businesses need is another loan on their financial statements. After a factoring company has scrutinized the credit rating of a company's customers, it can often be just a few days before the company begins to see income arriving from billed invoices that have not yet arrived. For the company operating on a seasonal basis or that has uneven sales patterns or even for companies just starting up, the factoring strategy has been proven to be a real asset to profit and growth.
Not just any Christian business is eligible to have working capital factoring as a part of its business cycle. In most cases, factors have some stringent guidelines by which they do business. A business must offer a service or a product that is delivered that will produce an invoice that has to be signed. The company must produce invoices that are final sales and have no opportunities for being disputed. Finally, the customers must have a sterling record of paying on time each time. Some of the favorites industries for capital factoring include medical businesses, oil and gas enterprises, security services, manufacturers, trucking companies and distribution companies.
Researching the business of working capital factoring, one is struck by the fact that the company doing business with the factor is not nearly as important as the strength of the company's customers. Often factors come in and assist companies that are not in as good a fiscal shape as the customers they serve. Factoring can be traced by to the Mesopotamians and was widely practiced in the American colonies so it has a long and storied history of engagement in business. For the president of the Runny Watercolor Paint Company, factoring was the springboard to a worldwide market.