Archive: September 2007

Equity participation – Providing an incentive to make a loan. Equity participation gives the lender an incentive to make a loan because they share in the increased equity of the business. If the lender feels that the business has a good model with plenty of potential, they can have a stake in the company, and will see an increase in profits as the company grows. The level of participation can be calculated from a variety of things including gross receipts, net income, or with an EBITDA valuation […]

Import and export financing – Allowing business to go on globally. Import and export financing exists to enable business to take place overseas. Import and export financing provides importers who have orders from customers in the United States, or foreign customers backed by a letter of credit, with the necessary financial backing to provide their overseas supplier with a letter of credit to guarantee payment of goods. There are many reasons for a business to engage in this sort of financing. […]

Government loans from the SBA (Small Business Administration) can be used for most business purposes The purchase of real estate to house the business Construction, renovation or leasehold improvements To purchase furniture, fixtures, machinery, or equipment For the flooring of inventory and for working capital. Government Loans are provided by the government to assist small businesses because they realize that they are the backbone of this country. The SBA (Small Business Administration) […]

Expansion financing is capital for business growth. Expansion financing is used for companies that are in a position where they need to expand, or want to expand and they need the extra capital to do so. If the market conditions are right, it can be a great move for a company to expand. Some businesses find themselves in need of expansion financing as soon as possible because of how rapidly their business is growing. Flexible term financing is typically available for a variety of business […]

Inventory loan use your inventory to secure a loan. Inventory loan financing (also known as "Flooring") is the leveraging of inventory using the value of the financed equipment or stock as collateral for the loan. Lenders want to make sure their loans are secure, so this method will improve the chances of getting financed drastically. Inventory loan financing is a method commonly used when a distributor or reseller needs additional credit and payment terms longer than 30 days in order […]