Running into difficulty financing your business can take a major toll on your quality of life and emotional health. This is especially true if conventional lending doesn’t meet your needs. In recent years, more businesses than ever before have taken advantage of alternative funding programs such as Merchant Cash Advances (MCAs) and business equipment leasing. These types of programs release funds for specific needs so that business owners can stay on track without the stringent and slow-moving process associated with traditional lending. Following are five alternative lending programs from RJ Funding Services (also known as Rafter J Funding Services) that you might not know about.
Merchant Cash Advances
A Merchant Cash Advance (MCA) is a convenient way to secure access to capital quickly. An MCA is not a loan in the traditional sense. Instead, a business owner will leverage future receivables for immediate cash. The amount of funds advanced to the business owner will depend on how much business income comes from credit card receivables and a business’s unique financial needs. An MCA is a beneficial way to avoid leveraging assets or large amounts of collateral for business funding.
Business Equipment Leasing
Business equipment leasing programs can be very advantageous to entrepreneurs—especially those whose businesses require heavy machinery to operate. Instead of purchasing business equipment out right, in full, a business owner can lease necessary equipment at a fixed monthly rate. Many business equipment leasing programs offer options to buy rented equipment at fair market value once the lease is up.
Purchase Order Financing
Imagine that your business received a large purchase order but you don’t have the inventory to fulfill the order. Many times, a large purchase order can put a business between a rock and a hard place. Instead of losing business, purchase order financing can cover the costs of inventory and materials so that businesses can focus on fulfilling orders. The firm that provides purchase order financing will also handle the collection process once the order is fulfilled.
Business Acquisition Funding
Have you ever wondered how existing businesses are purchased? One method, for those who can’t buy a business outright, is with business acquisition funding. This type of lending program involves providing capital for the procurement of an existing business. Funds are dispersed solely for the purpose of acquiring a business.
Private Money/Bridge Loans
Private money or “bridge loans” are terms used to refer to businesses or investors finding funding from a source other than a conventional lender. Today, private money normally refers to real estate investments—especially those who focus on flipping properties. Since real estate investors can have their capital tied up with another property being sold, private money can be used toward the purchase of the next investment property.
If alternative lending interests you, we recommend calling RJ Funding Services at (325) 942-8685 to speak with a helpful member of our team. You can also download and submit an application by clicking here.