How businesses access working capital has shifted, as traditional methods haven’t kept pace with the speed of business. Where can entrepreneurs turn for funding? These three alternative options may be worth considering.
(BPT) - How businesses access working capital has shifted, as traditional methods haven’t kept pace with the speed of business.
Growth is one of the biggest indicators of small business success. According to the Small Business Administration (SBA), more than 500,000 businesses have between 20 and 99 employees as of 2014. These established businesses are in the upper end of growth but have not yet met the threshold of being a medium business. In fact, 39 percent of growing companies — between three to five years old and seeking more than $100,000 — consider accessibility to capital their greatest concern. It’s during this stage businesses typically are faced with growth challenges.
Where can they turn for funding? These three alternative options may be worth considering.
1. Lines of credit
Lines of credit, provided by online lending platforms like Kabbage, offer established businesses in all industries the flexibility and convenience of accessible capital.
With Kabbage there are no fees to apply for a line of credit or annual costs to access funding. Small businesses don’t pay a thing to see for how much their business can qualify. Kabbage offers access to lines of credit up to $250,000, helping small to mid-market businesses access funding for operational costs and strategic investments like cash flow needs, purchasing specialized equipment, business expansions and launching high-growth marketing projects. There are also no obligations in how much a business is required to take. Businesses can take the amount they need from the line of credit when they need it, with no hidden fees or pre-payment penalties.
Lines of credit are faster and more flexible than traditional loans. In fact, Kabbage offers a loan application that can be finished in minutes — even through a mobile app — eliminating the time usually spent waiting in lines or filling out numerous forms.
2. Merchant cash advances
Some established businesses turn to a merchant cash advance (MCA) due to lower credit ratings, not having enough assets to provide as collateral, short-term financing needs or the flexible repayment terms.
Essentially, an MCA is an advance on future credit card payments. The cash advance is decided upon by the funding company, with the specific amount being paid back in full plus fees and interest.
With merchant cash advances, borrowers pay a set percentage of their credit card sales and make payments every time they receive credit card payments from clients.
3. Invoice factoring
Invoice factoring is another funding option established businesses use in lieu of bank loans. Factoring is the process of selling accounts receivables to a financing company for immediate cash.
Factoring helps businesses receive cash much faster than waiting for clients to pay their invoices. The financing company, known as the “factor,” pays the business the majority of the invoice upfront. Once the business receives payment from the client, they send those funds to the factor. The factor then pays the remaining percentage to the business.
Factors are more concerned with the financial health of the business’s clients rather than the business itself. These companies collect directly from a company’s clients and customers, sometimes requiring payment history validation from the business. A benefit of factoring is not assuming debt for money received; however, if clients are not creditworthy, you may not receive funding.
To maximize this growth, consider looking online at www.kabbage.com/yes to learn about and find new options that fit your business. Merchant cash advances, invoice factoring, and lines of credit are three alternative solutions that help growing businesses go beyond traditional financing methods.
Sell your home fast with these 3 often-overlooked home-staging tricks
(BPT) - If you'll be selling your home this spring or summer, your Realtor will probably talk to you about staging the house to maximize its appeal to buyers. Staging is a simple process that can have a big impact on how quickly your home sells and, Realtors say, how much buyers are willing to pay for it.
If you've decided to stage your home for a speedier, more profitable sale this season, keep in mind these three often-overlooked tricks to make your home look, feel and smell great:
"Aromas significantly impact emotions, so making your house smell good is a great way to appeal to potential buyers on a very elemental level," says Charlynn Avery, aromatherapist and educator for Aura Cacia, an essential oil brand "But be careful to not overwhelm with scents that are too 'perfumey' or synthetic, as those could cause adverse reactions in people who suffer from allergies. Instead, opt for natural freshening scents like lemon or purifying scents like eucalyptus."
Avery suggests warming water on the stove with a few drops of your favorite essential oil such as cinnamon, clove, vanilla or orange. It's a quick, low-cost way to create a welcoming aroma in your home. Deodorize carpets with a mixture of 18 drops of essential oil and 1 cup of baking soda. Or, you can easily create your own air freshener by mixing your favorite essential oils and distilled water in a spray bottle. For longer-lasting, comforting aroma, try this recipe for aroma crystals:
Vanilla amber aroma crystals
Mix salt and oils, pour into a decorative dish or bowl and set out on a table. Placing the crystals in a warm sunny window or near a heat register will help diffuse the delicious aroma throughout the room. Stir in additional essential oils to boost the scent as needed.
Declutter even where you don't think it counts
Your real estate agent will likely tell you to declutter - removing extra items from kitchen countertops and from tables throughout the home, packing away family photos and excess knick-knacks. All those things are important, but what happens when a potential buyer opens the hallway closet, or goes into the walk-in closet in your master bedroom?
It's important to declutter everywhere, not just the spots you immediately see when you walk into a house. Serious buyers will open drawers, cabinets and closets and if those spots are stuffed full, they'll look smaller, less impressive and unappealing.
Likewise, clean out your garage; it's hard for a buyer to appreciate the expansiveness of your two-car garage if that's where you've stored all the boxes of stuff you removed from the house. If you have a lot of stuff to pack away, consider renting a storage unit for a few months.
Clean as if your life depended on it
Kitchens and bathrooms sell homes, but even a hint of dirt in either room can wipe out a buyer's good impression of your home. A deep clean is essential in these rooms, and will create a positive effect on multiple levels; your home will look and smell clean, fresh and newer.
In the bathroom, be sure bathtubs and showers are meticulously clean. Descale showerheads and glass shower doors, clean and polish metal drain grates as well as fixtures. Clean grout, mirrors and every crevice. Add a few drops of lemon or sweet orange essential oils to sink and shower drains to keep them smelling fresh.
In the kitchen, in addition to clean countertops, floors and appliance exteriors, make sure the inside of ovens, refrigerators and dishwashers are also clean. Since kitchen appliances usually come with the house, buyers may look inside them. Change the filter in your kitchen hood and make sure the light over the stove is working. Finally, while clean windows are important throughout the house, they're essential in a kitchen where buyers want to envision themselves in a bright, welcoming environment.
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