Start Up Business Financing Alternatives You Must Try Out

To successfully fund your start up business, we recommend that you employ one of the following alternatives:

- A business loan. This kind of loan is often considered the most traditional form of business financing. With it, you can look forward to receiving sufficient funds to finance a business requirement. In return, you will be asked to submit payments to your lender, on a monthly basis, until you can completely pay back the funds you borrowed, plus a reasonable interest charge.

However, you should remember that applications for traditional business loans often take as much as four months to receive approval. And so this might not be the best financing option for you, especially if you need a huge sum of cash to finance an urgent business need.

- A small business credit card. Did you know that there are credit cards especially designed to meet the needs and special requirements of business owners? They're called business credit cards. You can apply for one and use it for covering the bills and expenses you will incur, especially if you don't have enough cash to settle them, right away.

There are two basic types of business credit cards - secured and unsecured. To get a secured business credit card, you need to make a substantial deposit to your target card issuer. This initial cash-out serves two important purposes. First, it guarantees the repayment of your credit card charges, in case of default. Second, it determines the spending limit that will be imposed on your business card account.

An unsecured business credit card, on the other hand, does not come with a security deposit requirement. Instead, it carries strict credit score requirements and steep interest rates. Still, it is worth mentioning that such lines of credit come with much higher spending limits or caps as compared to their secured counterparts.

- An equipment lease. If your business has limited financial resources and you need expensive equipment, such as heavy machinery, vehicles or office furniture then, we encourage you to lease, instead of purchasing, them. Look for an equipment supplier nearby and arrange for a true lease. After all, with this option, you can receive the equipment you need without shelling out a significant percentage of your working capital. Moreover, you can use your business finances for covering more urgent startup costs you will soon incur.

- Invoice factoring. If you're in dire need of cash to settle your financial obligations and to keep up with your loan payments then, we suggest you sign up for invoice, or accounts receivable factoring. In this arrangement, you will submit some of your unpaid invoices to a factoring company, for cash. This will provide you with at most 80% of the sum of cash tied-up with your accounts receivable. The remaining 20% will be given to you by the factoring agency as soon as it receives complete payment from your customers.

Now, to avoid problems, we suggest you carefully select the invoices you will submit for factoring. Look for the receipts from your most reliable customers and file them with your chosen factoring agency. By doing so, your enterprise can avoid getting penalized for payment delinquency or default.

Copyright (c) 2013 Irish Taylor

Business Financing - Alternatives To The Government Enterprise Finance Guarantee

Earlier this year the UK government introduced the Enterprise Finance Guarantee scheme (EFG). The EFG replaced the Small Firms Loan Guarantee Scheme (SFLG) with the commitment to helping small businesses raise the funds they require to trade through the current economic downturn. The EFG is based on the government guaranteeing up to 75% of the value of a commercial loan offered by a company's bank. The company's directors will normally be required to personally guarantee the remaining 25% of the loan.

Companies are still finding it extremely difficult to raise vital finance despite the government claims for the EFG scheme. According to a recent report published by the Department for Business, Innovation and Skills, in the year up until the 3rd April 2009 a total of 2,369 loan guarantees to the value of GBP 178m had been issued, under both the Small Firms Loan Guarantee Scheme and the Enterprise Finance Guarantee scheme. This figure is significantly less than the GBP 205m guaranteed in the previous year. It is also far below the scheme's GBP 360m budget set by the Government in March 2008.

For this financial year the outlook now is just as worrying. The latest Bank of England figures show that new lending to companies continued to contract in May 2009, following a fall in April. Clearly, despite the government's assurances and backing, UK banks remain extremely reluctant to provide new loan facilities for businesses. I have recently had a number of discussions with small business owners which back up this analysis. It seems common place that new loan and commercial mortgage applications with the backing of solid business plans are being consistently declined (often at the last minute) with little or no rational explanation from the lender.

Based on the current evidence it seems very much that the banking system is reluctant to back any business opportunity unless it has almost a cast iron prospect of success. This situation is certainly stifling entrepreneurial activity and thus undermining the driving force required to kick start the economy and move it out of recession.

Given this situation, business owners are well advised to consider alternative options for raising finance. Business refinancing can help in this area. Business refinancing generally involves raising cash secured against tangible business assets thus giving the bank real security and the comfort required to release funds. Examples of business refinancing include:

Asset refinancing

The process of borrowing against the value of any fixed assets which are owned by the business.

Invoice financing

The process of raising money based on a company's outstanding invoices. Invoice financing could allow a company to draw down up to 90% of the invoice value immediately on the issue of a valid invoice.

Trade financing

Enabling a business to receive up to 80% of the confirmed order value up front to pay the suppliers required to fulfil the order.

Until lending eases businesses will struggle to trade out of the current economic situation. However it seems that they are unable to rely on Government initiatives such as the Enterprise Finance Guarantee scheme to allow them to access the funds they need for expansion and growth. Unfortunately Business Refinancing will not be suitable for all. However it is certainly an option that should be reviewed by all in the current climate.

How Lawsuit Funding - Litigation Financing, Is No-risk Loan For Slip And Fall Litigation Plaintiffs

Slip and Falls account for more than 1 million injuries each year in the United States. Some times simple slip and fall can cause very serious injuries such as back injuries, paralysis, broken bones and head injuries. Often, slip and fall accident injuries can be permanent and irreversible, and usually require continual medical care. Costly medical treatment can leave victims and their families financially devastated.

A lawsuit loan, or litigation financing, is one good, safe and risk free option for plaintiffs involved in a slip and fall lawsuit to finance their daily needs. Legal cash advance or lawsuit funding allows them to take care of medical expenses, household bills, mortgage payments, auto payments, education expenses etc.

Most plaintiffs involved in personal injury lawsuit are ordinary people, who can barely afford the money to get their lawsuit off the ground, much less sustain it for years.

Most of them have missed work or lost their job and can no longer meet their household regular bills. Keeping up with their household payments can be a huge strain on them. Most of them are in need of medical treatments. They have to pay their mortgage or rent. Many of them may be one or two payments away from foreclosures. They need to pay children education expenses.

Deep-pocket defendants can buy time with legal ploys and delays, and manoeuver to frustrate the plaintiffs. Plaintiffs are often pressured financially, because medical bills and other expenses not to mention lost wages add up to a budget stretched beyond its limits.

What your attorney needs, in order to get you the best settlement or fairest trial, is time. Just as the defendants can buy time, so can you. Lawsuit funding or litigation financing allows you to get relief from financial pressure so you do not have to settle your case simply because you need whatever money you can get now. Lawsuit funding is often referred as lawsuit loan, lawsuit financing, legal finance, loan funding lawsuit, lawsuit cash advance, litigation financing, litigation funding, pre-settlement loan, personal injury lawsuit financing and lawsuit pre-settlement funding.

There are many advantages of lawsuit funding or litigation financing. It carries no risk to the plaintiffs. Some of these are as followings:

1. When you apply for lawsuit loan or litigation financing, there is no application fee. A good and reputed lawsuit financing company should not charge any upfront fee or any application fee, processing fee or any monthly fee.

2. No credit or bad credit is alright, to apply for lawsuit loan or litigation financing because approval of is based on the strength of your lawsuit. The lawsuit funding or lawsuit financing is not based on credit history, unless there is a pending bankruptcy.

3. No employment requirement is required to apply for a lawsuit loan or lawsuit financing.

4. Lawsuit cash advance or personal injury lawsuit financing, is not a typical kind of loan. Loans are repayable absolutely.

A loan is type of financial aid which must be repaid, with interest. But lawsuit cash advance, litigation financing or lawsuit pre-settlement funding is actually purchasing an interest in your settlement. So, if you lose your lawsuit case, you do not owe the lawsuit funding company anything.

5. When you apply for lawsuit funding or litigation financing, all information is kept confidential and only parties who know about the transaction are you the plaintiff, your attorney, and lawsuit funding company.

6. Approval is always fast for lawsuit loan or personal injury lawsuit financing. Mostly in 24 to 48 hours (some times in 4-6 hours).

7. Once you get a lawsuit cash advance, you do not pay back until you win or settle the case. Unlike a typical loan, where you have to start paying back the loan right away and continue making payments until it is paid off, no matter when you receive your settlement and even if you lose your case and receive no money.

8. Lawsuit advance funding or litigation financing is actually a non-recourse lawsuit cash advance on the future value of your case. Unlike a loan, if you lose your lawsuit case you owe nothing in return.

9. Lawsuit advance funding or lawsuit loans are no-risk and a win-win help for plaintiffs involved in lawsuits. These are available for nearly all types of civil and commercial lawsuits.

A lot of slip and fall accidents lawsuit plaintiffs are being forced to settle early for way less amount, than they deserve, because they simply can not afford to wait any longer. There is no reason for them to settle for fewer amounts, than their lawsuit case is worth.

How to Go For Bad Credit Truck Financing

You might be into trucking business and looking forward to extend the same. But you might be lagging behind with your credit score. In other words, you might have poor credit score. Getting or buying a truck through finance is not an easy job. Bad credit does pose problems for you in securing finance. But, this does not point to the fact that you would not be able to buy a truck with bad credit score. There are commercial truck loans that are available and these loans provide you with a feasible solution to your problem of buying the truck. Your bad credit score can be due to any of the reasons like arrears, foreclosures, your bad credit score, problems in your payments etc. You can borrow the amount you want depending upon your abilities to repay it back. This amount starts from 2000 pounds to 5000o pounds. This is further applicable for a period of 1 to 5 years. However, you can extend this time period but this is possible with higher charges and penalty

You can go for the type of truck you want. This truck can be for your company or for your own commercial use. If you are able to provide your income proof, it becomes easy for you to get it financed for the bad creditors. This can be in any form including your tax return, your bank statements or any kind of the employment documents that the lenders would be requiring to verify. There are times when you do not have enough funds to buy a commercial truck. You would come across a number of bad credit truck financing services. For such conditions, you can avail commercial truck loans. You can avail this facility in two ways. One is going for the secure loans and the other way is opting for the unsecure loans. In case of the secured loans, the truck becomes your security. You here are likely to lose your truck in case you fail to repay the same in time. The unsecure loans do not ask you for any security. Thus, bad credit loans for trucks are available that provide you with enough cash to purchase a truck and enable you to pay your money back over a period of time. Commercial truck financing bad credit provides you with cash even though you are at bad credits. These are the financing companies who do not worry about any credit checks before giving you any loans. You can also opt for other companies if you are looking forward to the truck loans with low interest rates. Make sure that you provide the correct information whatever the lender asks you for. For getting this loan, you can either go to the lender personally or you can also fill the application form online

You must be able to convince the lender that you are capable to repay the amount you would borrow. You must have a bank account. You need to be more than 18 years of age. You must be employed and thus have a monthly income