Phoenix Small Business Investing, Funding, Loans and Financing

By Michael Russell

Perhaps no other major industry is better suited to factoring than the building and construction industry.  For many years, the peaks and valleys of construction seasons and cycles have troubled subcontractors and general contractors alike.  Now factoring offers a cost effective and simple solution that can benefit both the contractor and the factoring company.  Many factoring companies have even gone for far as to specialize in factoring for the construction industry, learning the unique language and needs of subcontractors. Read the rest of this entry »

By Max Bellamy

A factor is basically a financial institution that purchases accounts receivable from businesses.  The factor normally bears the credit risks associated with the accounts receivable purchased by it.  There are about twenty firms in the United States engaged solely in factoring. These firms raise their operating funds by issue of equity and debt capital. Read the rest of this entry »

By Lou Wallace

Historically a first tier lender has been an institutional lender such as a Bank or similar company which falls under the regulatory agencies such as the FDIC or Federal Reserve.  The rates of interest they charge are almost always tied to Prime, or to the Libor rate of interest.  The interest charged is at quoted rate plus a factor which can be as high as 4%.  An example would be if the rate was agreed to be the prime rate, you would take that rate and add 4% to it which would get you your annualized interest rate.  Read the rest of this entry »

By Lou Wallace

One of the major failings of most businesses is the lack of accurate financial information.  What these business owners don’t understand is that current and accurate financial information is the first thing and lender will want to see and if it isn’t up to par, well you know the old saying about its hard to make a good impression the next time.  Read the rest of this entry »

By Lou Wallace

Are you positioning your business to be first in line to move when things turn around? The economy, while showing signs of improvement is still sluggish and everyone is still trying to figure out if it has reached bottom.  Small business owners are still scrambling to keep their business in the black. Read the rest of this entry »

By Lou Wallace

The magic of turning the calendar page brings new inspiration to everyone.  Reflection on the past year turns to focus to the New Year.  At the top of everyone’s list of questions for 2009 “How can I grow my business?”  Read the rest of this entry »

By Lou Wallace

Start up businesses as well as expanding businesses need working capital.  Even established companies occasionally need a source of quick capital. The easiest and quickest way for a company to get this needed working capital is to factor it receivables.  Read the rest of this entry »

By Lou Wallace

There seems to be a lot of confusion in the financial arena about factoring.  While factoring is the oldest form of financing for a business most people including some financial experts have formed the wrong opinion of factoring.

I have had recent discussion with financial advisors and accountants who feel referring their clients to a factor or asset based lender will reflect poorly on them as professionals.  While they know their clients need assistance they believe that factors or asset based lenders are not as reputable as Banks.  They also feel that factors and asset based lenders are the lenders of last resort or only for companies that are on the verge of failing.  I am not sure who started this ridiculous theory but I have to believe it was probably some Banker who wanted business owners to believe that if they couldn’t borrow from a Bank then there was something seriously wrong with a persons company.  Read the rest of this entry »

By Lou Wallace

The financial markets have not dried up; the banks are just clogged.  Perseverance and creativity is a quality within every entrepreneur.  Business finance is readily available to those who look beyond the bank to asset based lenders.

Before there were business credit cards or home equity lines to borrow against there was Factoring.  Popularized originally in the garment, furniture and floor covering industries this form of financing has evolved to be an ideal form of financing for new or growing businesses.  Cash flow factoring is the perfect solution to cash strapped companies.  Read the rest of this entry »

By Lou Wallace

Where to find working capital is a problem that plagues all business owners.  Whether to seek an “Angel” Investor or find a commercial small business loans through an Asset Based Lender or traditional banking source.  The difference is dramatic.  Read the rest of this entry »