Invoice Financing for Small Business

Sometimes it happens in a businessman's life that their cash gets tight, and they have to look for other outside sources to manage their expenses. In such cases, the small business owners are looking for a loan either from the bank or from online lenders. But, not everyone thinks about taking a loan, as you need to qualify for it, and it is also a time-consuming procedure.

So, the business owners who look for timely financing to invest in their business can take advantage of Invoice Financing for Small Businesses. This is a more reliable and sensible finding option.

An Outline of Invoice Financing

Invoice Financing is also known as accounts receivable financing, which is a form of asset-based financing. In this financing, business owners receive cash amounts in advance in exchange for their unpaid invoices.

Now, the companies which give you the advance depending on the value of their invoices. Usually, financing companies can provide you with advance up to 85% of your invoices, and you receive the remaining 15% when you pay your invoices.

In this financing, your invoices serve as collateral on the cash amount you borrow from the company. Moreover, it is easy to qualify for this type of financing as compared to other loans.

The Working of Invoice Financing

With the help of invoice financing, small business owners can receive a credit line against their unpaid invoices without disturbing their relationship with their clients. Rather than selling your invoices to another company, it is an excellent choice to let invoice financing handle and control all of your invoices.

In addition to this, this financing enables you to reclaim control of your cash flow. It is a bizarre activity to pay your bills monthly, and this activity will never make you stress-free.

This will give you peace of mind that you know paying your bills and knowing the details of your funds is as easy as a piece of the pie.

If you think that Invoice Financing for Small Businesses only helps to give you a cash amount, then you might be wrong. Because it is a helping hand for the companies, who want to buy new products for their business, launch new marketing initiatives, buy the latest equipment and technology, and remodel their commercial sites or offices.

Types of Invoice Financing

There are two types of invoice financing; 

●      Invoice Factoring

●      Account Receivable lines of credit

Invoice Factoring

Invoice financing and invoice factoring, both terms are used interchangeably. But they are different from each other.

Invoice Financing you have to repay the cash amount you borrow, and it also includes the lender's fees. But, in Invoice Factoring, you sell your invoices to a company at a discount.

Account Receivable Line of Credit

In this type of invoice financing, you use your invoices to finance a credit line. Thus, the line of credit is backed by your invoices, and you receive 85% of the value of those invoices.

With the account receivable, the borrower has to pay an interest rate based on the balance. When a customer pays their invoices, then that amount is deducted from the credit.

Pros and Cons of Invoice Financing for Small Business

Invoice financing is the right option when you need cash immediately, but it has some drawbacks that you should also consider;

Pros

●      You don't require collateral for this because invoices themselves serve as a collateral

●      It is a confidential lending opportunity.

●      You have to pay interest only for the amount you borrowed.

●      You will get fast approval

●      It includes minimal paperwork

●      Fast access to capital

Cons

●      It has higher fees as compared to other financing options

●      It is challenging to evaluate cost upfront because its fees are based on customers' time to pay.

●      It can be risky if the customers don't pay for it

●      It needs invoices as proof

●      It doesn't work for B2B businesses

Applying for the Invoice Financing

It would be best if you have the following things that a lender can ask you to provide when you apply for Invoice Financing for Small Businesses;

●      The list of invoices that you want to finance.

●      Financial bank statements

●      A copy of the government's issued identification.

But, these things may vary from lender to lender, so make sure you know the qualification requirements before applying. Also, make a complete file of all of your documents to avoid any risk.

Structured and Secure Invoice Financing

Lenders get benefits from invoice financing because it is structured and a secure line of credit. Your invoices act as collateral for the amount your borrow, and these things make it different from an unsecured line of credit.

The lender lends only a percentage of the total invoice amount to eliminate any risks that the borrower may not repay the loan. If a person is unable to repay the loan, then the lender is left as a creditor.

Closing Remarks!

To sum up all the discussion above, we can say that invoice financing is ideal for businesses looking for cash amounts tied in unpaid invoices. There are a lot of companies that give you invoice financing, but one of the best financing Companies is BitX Funding that not only gives you the loan but also suggests you the best suggestions that solve all of your problems.

Small Medium Business Loans

Small Medium Business Loans are intended for purchasing equipment that is required for running the business operation smoothly. Parts that are for non-professional use are not included in the financing measure.

What is meant by Small Medium Business Loans?

Small Medium Business Loans come with a repayment period of two and five years. Typically, these loans offer $500,000 in funding, with a repayment schedule and market interest rates. It takes two to three weeks to get finance with a small, medium-term loan.

Either you are considering getting a new start by establishing a business or already have one, you will need some sort of financing to achieve your goals. If you are a small business owner, it is worth considering all the loan options available there.

Term loans are a broad option for small business owners for a traditional loan with repayment and predictable payments. Your credit history, cash flow, and other factors decide the term loan that you will receive.

When you are considering term loans, then a small-medium business loan can be an excellent choice for small business owners. These loans have a payback period of two to five years.

To know more about it, let’s get through all the details about these loans.

Working of Small Medium Business Loans

Small Medium Business Loans are the same as Long-term business loans or short-term business loans, and the main difference is in the repayment time frame. Besides the time frame, small-medium business loans are also different in their qualification and interest rates.

You can get these loans from banks or alternative lenders.

Qualification Standard of Small Medium Business Loans

If you qualify for small-medium business loans, your business should produce revenue and have average credit. Every lender has its qualification standards. For instance, if you are lending money from a bank, the bank will look for a credit score over 700, and then your business should be at least two years old with potential solid growth. You also need to take down some collateral if you want to get this loan.

As compared to this, online lenders are more relaxed, and they can efficiently work with borrowers with a credit history of 600+ range.

What Do You Need to Obtain a Small Business Loan?

Every lender has its requirements, and that varies from one another lender. But the following are the ones that every lender may require. 

●      A detailed business plan with marketing strategies and every detail on growth.

●      Tax returns and all the supporting documents for your business.

●      Applicable license for doing business in your state.

●      All financial documents relevant to your business include unpaid invoices, bank statements, and account receivables.

●      A bank account to deposit the loan.

Now you will be wondering how a small business can have all of these details. So, in that case, the lender would rely on your credit scores. But, if you are purchasing an already existing business, then the lender can ask for the information of that business.

After submitting your application, be patient because it may take some time. However, there are some loans that the lender approves in a few hours. So, make sure that you know the time of approval before applying for the loan.

Opportunities you get with Small Medium Business Loans

●      Set a monthly payment

Regular payments that you arrange between one month apart can be a great thing for those businesses trying to budget their fixed costs.

●      Improved Credit History

Receiving and then successfully paying your loan can automatically improve your credit score and build a strong credit history. This also helps you to get more loans for your business in the future.

●      Fixed Interest Rates

 Small Medium Business Loans have fixed interest rates. Moreover, it also tells the business owners how much it costs them over time.

So, you can use these loans for a variety of different purposes.

Obstacles in Small Medium Business Loans

●      Difficult to Qualify

These loans require collateral, so you cannot get these loans if you don’t have a good cash flow.

●      Lengthy Process

These loans require more paperwork and a long turnaround time as compared to short-term loans. But, they are still faster than long-term business loans.

●      Cost and Penalties

These loans come with fees and prepayment penalties, so you should consider all of these obligations before getting a loan.

Being in a small business, you come to know that the term loans like small, medium business loans are a practical option for growth. Your credit history will also favor your loan terms.

So, keep these things in your mind and talk to your lender to get the best loan.

Closing Thoughts!

Since there is flexibility and ease of standard set of repayments, therefore, small-medium business loans are popular in small businesses. You should be aware of all the fees, penalties, and other essential factors before going for any loan. If you still have any confusion, you can contact BitX Finding, and we will provide you with the details that will help you. You can ask us, and we will ensure to satisfy you with the best options. 

Quick Small Business Options in the Market

Life moves at high speed in the small business world. Your business has an opportunity on the horizon to easily double or triple the revenue. Or rather, you may need cash to solve this problem. No matter in which situation you are, quick small business loans are the best solution you need.

Sometimes it is not easy to get a quick small business loan to push your business in the right direction. It does not matter what your goal is and what you want to accomplish; without a small business loan, you will lag in this competitive business world because this business loan will take your business to the next level.

So, let’s get into it and see some of the fastest business loans that will help you take your business towards great success.

Quick Small Business Options in the Market

Below is the list of the quick small business loans that you can quickly get in just 24 hours.

Small Business Loans

The time to fund these loans is 24 hours. Any business can take advantage of this as they come with flexible and fixed financing opinions that range from 6 months to 10 years.

Equipment Financing

The time to fun for this quick small business loan is from 24-48 hours. You can easily purchase, lease, buy any equipment, and lower your capital by not paying from your pocket. So, all the business holders looking for fast equipment funding can take this loan.

Business Line of Credit

The time for this finding is 24-48 hours. You can get the capital whenever you need to take any spontaneous opportunity best for your business.

Merchant Cash Advance

The time to fund is 24-48 hours. You can get cash in advance from the portion of customer sales. The less you make, the less you have to pay. This is one of the flexible financing options that come with the more cooperative repayment terms. 

SBA Loan

Funding time for this loan is from 24-48 hours. This is one of the fastest and easiest loans in the market. You can get a cash advance for your SBA loan in 24 hours and get your SBA loan in 45 days.

Fulfill your immediate needs with Quick Small Business Loans

You can manage all of your needs and fulfill them with the help of a quick small business loan.

You can get a small business loan for your new start business. For instance, business lines of credit are flexible financing options because they offer higher limits than other cards. Moreover, they also have return awards for the customers. They also help the borrower to make strong and score credit card scores.

If your business needs cash immediately, you can get the capital with a quick small business loan as fast as possible.

Hence, you can easily carry out your business operation related to cash with the help of quick small business loans.

Closing Thoughts!

So, all of the loans mentioned above will help you get quick small business loans and achieve your goals. You can choose the loan options that suit you best and take your business on the road to success. You can also contact BitX Funding for loan options. Our professionals will help you and suggest you the best quick small business loan option for you. 

Overview of Equipment Financing

Business Equipment Financing is finance that provides the company with the specific amount of money that the business owners need. They can buy equipment from this finance and grow their business. For example, This financing includes vehicles, heavy machinery, computers, and other expensive office or business equipment.

By using equipment financing, the lender will provide the borrower with the necessary funds that they will require to secure the funds for the business equipment. In return, you have to repay the money with interest. For the ease of the borrower, the Lender divides this into monthly installments.

When should a business owner consider equipment financing?

These days, every business is dependent on Equipment Financing, and therefore, it has become one of the popular choices of business holders. The majority of the people consider equipment financing in their career, which helps them keep a steady cash flow. Moreover, it helps their business operation to run smoothly and successfully.

Whenever you need to update or replace your equipment, then financing helps you to afford this easily.

Most feasible options for Equipment Financing

There are several different options to finance equipment for your business. It is essential to find the right equipment financing, which entirely relies on your business type. So, let’s discuss some practical ways to finance the equipment. 

●      Business Equipment Loans

This is best for that business owner who is looking for an easy way to receive financing quickly.

●      Operating lease

The business owners who need financing for the short term, then leasing is the ideal solution. 

●      Business Credit Card

This is for that business who are familiar with the usage of credit card efficiently. 

●      Merchant Cash Advance

It is the funding program that suits the majority of the business owners because it makes the payments through credit or debit card transactions.

So these are the most popular options for equipment financing.

How long can you finance equipment?

For equipment financing, the period depends on the cost of the equipment you are looking to buy. So, we offer our clients the chance to finance equipment for 1-3 years.

What are the advantages of Equipment Financing?

The main advantage of business financing is that it is one of the most flexible forms of financing. It can easily and quickly improve the cash flow and gives the company great purchasing opportunities. In addition to this, Lender or banks fast approve this financing.

So, let’s jump and see more advantage sit offer to the business owners.

Enhanced Cash Flow

When you choose business equipment financing, it gives you a better chance to secure a large amount of working capital for the business necessities of the daily routine.

Flexible Finance

The best solution to get equipment financing is to stick with your business budget so that you can choose and decide how much you need to borrow and for how long.

Better Purchasing Opportunities

An increase in purchasing power will allow your business to access more equipment in the future. You also have the freedom to opt for better equipment.

Concluding Remarks!

Running a business is quite challenging, and having the proper equipment is also essential for success. Fortunately, it is easy now to secure your financing for your business operations. At BitX Funding, we provide the best equipment financing to our clients to give them loans according to their requirements. Contact us and get the best equipment finance for your business. 

Short Term Business Loans

What Is a Short-Term Business Loan?

A short-term business loan is intended to give small businesses a quick admittance to financing to cover short-term capital requirements. Ordinarily, short-term business loans are utilized to oversee cash flow, dealing with crises or groundbreaking opportunities, and spanning bigger financing arrangements.

For the most part, a short-term business loan has terms of one year or less and is organized as a singular amount loan with repayments made on a day by day or week after week plan. Contrasted with other business loans, short-term loans frequently have more modest loan sums and higher interest rates.

Albeit a few banks may offer this kind of financing, short-term small business loans are normally accessible from alternative, online lenders. Along these lines, with streamlined application measures, speedy funding, and adaptable requirements, short-term loans are an incredible alternative for an assortment of small businesses with a scope of short-term financing needs.

Qualities of Short Term Loans

Short term loans are called such in light of how rapidly the loan should be paid off. By and large, it should be paid within a half year to a full year or, in some cases, one and a half year. Any more longer than that, then the loan is viewed as a mid-term or long-term loan. Some short term loans don't determine an instalment plan or a particular due date. They essentially permit the borrower to take care of the loan at their own speed. Some key characteristics of short-term loans are listed below:

●       The maximum loan amount is up to $250,000.

●       The interest rates start at 10%. 

●       The loan term is 3 to 18 months.

●       The loan can be obtained as quickly as one day. 

Kinds of Short Term Loans

Short term loans come in different structures, as recorded beneath:

Business Line Of Credit

Unlike a conventional term loan, a business line of credit gives you admittance to a particular sum of capital, from which you can draw whenever. You just pay interest on the finances you draw—and usually, when you've paid back what you acquired, your credit line resets to the first sum. Accessible from an assortment of lenders, short-term lines of credit are quite possibly the most adaptable types of financing.

Invoice financing

With invoice financing, you get an advance of capital that is insured by your business’s unpaid invoices. A lender will commonly present 85% of the worth of the invoices, with the remaining 15%, short their charges, paid out when your clients pay their invoices. This kind of short-term business loan is additionally accessible from numerous online lenders.

Merchant cash advance

A merchant cash advance is a kind of funding wherein an organization fronts you a set measure of capital in return for a percentage of your debit or credit card sales. For this situation, you pay back the sum you've acquired on a daily or week after week premise with those sales, in addition to charges. Albeit this kind of short-term loan permits you to pay back your debt depending on your business, it's by a margin the most costly type of financing—with APRs that can reach more than 100%.

Advantages of short term loan

1.     They have a set instalment structure.

2.     They are quick to fund.

3.     There is restricted paperwork needed for the application.

4.     It is the most reasonable loan for a broad scope of business purposes.

5.     It has more adaptable qualification requirements than other business loans.

Disadvantages of short term loans

1.     They have high-Interest rates than longer-term loans.

2.     The repayment is often daily or weekly as opposed to monthly.

3.     Due to their frequent payment schedule, cash flow can impede.

The Best Short-Term Loan Lenders

●       Solidly

They are known for giving access to short-term working capital or business development loans.

●       OnDeck

They are known for fast short-term loans with the chance of a prepayment discount.

●       Fora Financial

They are known for easier admittance to short-term financing.

BitX Funding

To obtain the short term loan that fits your needs contact BitX funding is a business funding matchmaker who will coordinate you with other business funders you might be equipped for. BitX Funding is a decent spot to begin your quest for a short term business loan. BitX Funding is a believed online lender with satisfied clients by all accounts. On the off chance that you'd prefer to see numerous loan choices accessible to you with just one loan application, visit here.