Monday, September 27, 2010

The Small Business Owner's Guide to Alternative Funding

At a time when banks are saying "no, no, no" to small business owners loan requests, one funding expert is teaching entrepreneurs how to find lenders who will say "yes, yes, yes".

Her name is Karlene Sinclair-Robinson, and she's the managing member of KPR Funding Solutions, LLC - a company based in Northern Virginia that provides a wide array of business and financing consulting services. She's also the author of a book entitled The Small Business Owner's Guide to Alternative Funding: What The Small Business Owner MUST Know To Get Through These Financial Times.

Specializing in assisting small business owners find funds for start-up, expansion or survival through non-traditional means, her book is a great tool as it guides business owners through the entire process.

Topics discussed include:
* Microloans
* Peer-to-Peer Lending
* Merchant Cash Advance
* Factoring and Accounts Receivable Financing
* Purchase Order Financing
* Equipment Lease Financing

In Merchant Cash Advance, for example, business owners can get an advance on the anticipated revenues they will receive from their card processor for purchases made with credit cards. "Here you have a business owner using their past and future expected credit card transactions to access the capital they need," she says.

Factoring and Accounts Receiving Financing are financing options whereby a Factor or Funder buys the business owner's unpaid invoices at a discount. "Sure, you get less money overall from your outstanding invoices, but with this technique, you receive a cash infusion now, when you need it. This addresses the ‘Time Value of Money’, whereby having the money now can make the difference in whether or not your business survives, and it actually cost you less overall. Remember, money on paper is not worth the same as cash in hand today," she says.

According to her, there is no single alternate funding method that is right for every business, and no one best solution overall. "It all depends on your situation and specific needs," she adds.

For more details about the book, visit www.SmallBusinessFundingGuide.com

1 comment:

  1. Great post!! Thanks for sharing such an wonderful information ...

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