Small businesses entrepreneurs in need of starting capital can avail of government small business loans. Depending on the nature of the business venture, a business loan could even be more appropriate than venture investors, venture funds or even grants. The government business loans are available for all manner of small businesses, like pet supplies, gifts and greeting card shops, embroideries, accounting establishments, dance studios, entertainment-type business, consulting, photography, art design, painting, catering and restaurant business, repair of appliances, beauty salon, beauty products, real estate and brokerage.

Compared to investors of angel or private ventures as well as venture funds, government small business loans are a much better alternative, especially when looking for start-up funds for a business.

To show that small business plays an important factor in the economy of the country, the Small Business Administration (SBA) as well as the Internal Revenue Service (IRS) reports that in 2002, the number of small business in the US are somewhere from 23 million to 26 million and that they have provided around seventy-five percent of new employment opportunities in recent years.

To help businesses that are unable to obtain financing funds by means of other lending means like venture capital funds and investors, the U.S. Government cooperates with numerous lending establishments to provide these businesses with and venture capital financing and loans.

For decades, the Federal Government programs, like the Small Business Administration (SBA), have been providing assistance to businesses in the US. The SBA, in 2003, announced a loan increase of 1.4 billion dollars for small businesses. Within the past 50 years, small businesses numbering in no less than 20 million have been provided for by the SBA of more than $30 billion in terms of loans.

For businesses requiring immediate financing, a number of government business express loans are available which can be processed and completed no more than a few weeks.

The range of the amount of loan that can be obtained depending on the changing financial requirements can be anywhere from $50,000 to as high as $3,000,000. To find out more about government small business loans, the VentureWorthy survey should be taken.

For detailed information on how to obtain a Government Business Loan, visit GovernmentLoanForBusiness.com

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Invoice Financing As A Business Loan Alternative

Having a business loan application rejected can be a very heavy blow for a business. Ultimately, this may mean that the business will not be to invest for growth – or not be able to cover certain expenses. For many companies, having business financing is a requirement for growth as they need funds to be able to expand the company into new opportunities.

The two most commonly known financial products that are used to improve a company’s cash flow are conventional small business loans and lines of credit. Although these two products are the best know, they don’t always provide the best solution. If the biggest challenge your company has is that you can’t afford to wait 45 days to get paid by your commercial clients, you should look into invoice financing.

Most commercial transactions follow the same format. The product or service is delivered, along with an invoice. The client then has between 30 to 60 days to pay your invoice, depending on the terms you offer. Many companies have no alternative other than to offer payment terms simply because large companies demand it. It is a cost of doing business, though it could cost you your business if you can’t manage your cash flow properly.

One way to solve this problem is to use invoice financing. Invoice financing is a fairly straight forward product that has been gaining market traction in the past years. It eliminates the 30 to 60 days invoice payment wait, helping companies gain a more stable financial footing. One critical difference between invoice financing and other products is that invoice financing companies look at the credit worthiness of the company paying the invoice as their most important source of collateral. This feature makes invoice financing a viable alternative to small companies with thin or no credit, but a strong list of clients.

The majority of invoice financing transactions are structured as an invoice purchase, where the factoring company finances the invoice in two installments. The first payment, usually 80% of the invoice, is made as soon as you submit the invoice to your customer. The remaining 20% ,less the discount, is advanced as soon as your client actually pays for the invoice.

By: Marco Terry

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Looking for a business financing solution? If you can get a business loan you should consider using invoice financing as an alternative. For information, please visit our website or call (877) 300 3258.

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