Commercial Finance Lenders are non-bank lenders who provide business financing to higher credit risk companies. Prospective customers for these financial institutions are small businesses that are either a start-up, have non-bankable credits or established companies that are looking for alternative sources of financing. Here are a few types of financing programs available for these small businesses:
? Factoring, This program offers a short term solution for cash. The lender purchases open accounts receivable at a discount in exchange for cash. This financing converts a credit sale to a cash sale. The lender will then collect the receivable.
? Accounts Receivable Financing, This is a loan that uses the company's invoices as collateral. The lender provides a cash advance to the company equal to a certain percentage of each invoice's amount. The company then has the responsibility of collecting the receivable to repay the lender.
? Equipment Financing, This option allows the small business to finance the acquisition of new or used equipment using a term loan or an equipment lease. This program offers 100 percent financing at a fixed rate over an extended term.
? Growth Capital Financing, This is a term loan to provide capital to finance the growth of your business. The loan proceeds on this type of program can be used for any business purpose. The lender files a blanket lien on the business either in a first or second position behind company's primary lender.
To learn more about Commercial Finance Lenders, consider attending the Small Business Financing Workshop to be held on October 26 at the Chamber. For more details, contact Andrea Korogi at (760) 931-8400.
? Factoring, This program offers a short term solution for cash. The lender purchases open accounts receivable at a discount in exchange for cash. This financing converts a credit sale to a cash sale. The lender will then collect the receivable.
? Accounts Receivable Financing, This is a loan that uses the company's invoices as collateral. The lender provides a cash advance to the company equal to a certain percentage of each invoice's amount. The company then has the responsibility of collecting the receivable to repay the lender.
? Equipment Financing, This option allows the small business to finance the acquisition of new or used equipment using a term loan or an equipment lease. This program offers 100 percent financing at a fixed rate over an extended term.
? Growth Capital Financing, This is a term loan to provide capital to finance the growth of your business. The loan proceeds on this type of program can be used for any business purpose. The lender files a blanket lien on the business either in a first or second position behind company's primary lender.
To learn more about Commercial Finance Lenders, consider attending the Small Business Financing Workshop to be held on October 26 at the Chamber. For more details, contact Andrea Korogi at (760) 931-8400.