Financing Guides

In business, there are words or terms that are recognizable by the business people at the moment when they are spoken or raised in any conversation. Word like assets, liabilities, equities, profit, expenditure, loans. Financing is a word that cannot be separated from business.

Financing

Financing is the act of providing fund for business operations, activities and projects. It consists of debt and equity capitals that are used carry capital investments, make acquisitions and support business.
The financial institutions that are approached for getting funds are banks, private lenders, financing companies, credit unions and cooperatives.

Factoring

It is a method of finance where company sells the bills receivable to get cash. It can be used by the companies with poor credit or the business like apparel manufacturers, which have to fill order long before they get paid.

Use Credit Card

Funding your business with the use of credit cards is risky. If you fall behind on your payment your credit card score gets whacked. If it is used responsibly it can get you out of the occasional jam and will extend your account payable to shore up your cash flow.

Crowd Funding

The crowd funding site can be fun and effective way to raise funds for relatively low cost creative project. You can set goal for how you would like to raise money over a period of time.

SBA Loan

This loan is guaranteed by U.S. Small Business Administration in the wake of credit crisis reluctant to bank to take any chances with their own money.

Microloan

These loans are often so small that commercial banks don’t bother to lend funds. Instead of a bank, micro lenders or non profit organizations can be selected that works differently from the bank. This requires less documentation than banks, and offer flexible repayment terms.

Business Line Of Credit

It is revolving loan that allows access to a fixed amount of capital, which is used by small business to meet their short-term needs. It can be used to finance short term working capital requirements, like- purchasing inventory.

Lifeblood Of Growth

Finance is considered as lifeblood of the industry and commerce. Without finance the business won’t thrive, industries will not grow and economies will thrash.

Why Financial Management?

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It generates money

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Organize operations

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It manages cash flow

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It help to strategize funding

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Outline long term goals

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It helps to sustain economic downturn

Internal Financing

The company uses its own net incomes and profit in order to make new investments, expand its operations, purchase new capital equipment or other business activity. Internal financing can also be done by selling idle or unutilized assets or the identified non- core assets or businesses, by using the proceeds from sales to fund its new projects or business. There is no transaction cost incurred, no interest payments. Business owners have more freedom and control.

External Financing

The fund obtained by business from outside sources such as banks, private lender, and non profit organizations. It allows business to preserve their current resources. It helps the company to finance growth projects. It helps the company to become more competitive. It is also used for funding for large capital equipment purchase to facilitate the growth of company.

Why Financing

Working Capital:

The business chooses to apply for funding to create enough working capital that enables them to fulfil their ambitions. The loan can cover short term funding requirement by giving the money to the business that it need to grow.

Asset Purchase:

An asset funding loan is a great way to spread the cost of acquiring an expensive new asset. Purchase of assets is often required in growing your business and increasing sales.

Growth Funding:

You need funding that will enable you to execute on your business plans, if you are looking to grow your business or to take it to next level. A loan for growth finance can help you whether you want to increase sales, expand your range of products or service move into new premises or hire more staff

Debt Restructuring:

A loan that consolidates your borrowings and reduces costs can make your finances more manageable for your business can be used if you need to restructure your company’s debt. This type of loan can make your financial planning easier by reducing the number of monthly repayments.

What Our Clients Say?

Here are few reviews and comments from our clients.

The Financing Compass worked extensively with me to help me anticipate some of the issues that my business may face. Not many lenders would go to that length. They’ve been extremely supportive and a great resource.

Innovo

United States

Financing Compass enabled me to take advantage of an incredible opportunity to relocate and expand my business, at a pivotal time. The support I received from Financing Compass staff was priceless.

Minakshi

United States

Working with Financing Compass helped me develop my business plan, ideas, and brand before getting started so that I was prepared to open a successful business when I received my loan.

Irnan

United States

Are You Looking For Our Services?

If you want Financing Guide to start your business you can contact us. We will provide you with the best service that will benefit your business.