Almost every business at one point it time has had the same issue. How do I finance my business? There are so many choices out there that the decision can be daunting. I myself throughout my career have had to help businesses at different stages of growth obtain financing. The process is a fulltime job and most entrepreneurs or small business owners don’t have the extra bandwidth to dedicate to this process.
At KatalystFP, we are a receivables financing company and offer a solution not often thought about in the small business funding space. Not many people don’t know about receivables factoring or have even thought about it.
We deal with a bunch of small software companies and I was recently with one them at a technology incubator. I met with a lot of the companies at this incubator to hear about their products and office any advice. One of the big things I kept hearing from them was, “Why can’t I use your receivables financing to finance my business?” The answer is you can. As long as your business is collecting receivables, you can sell those to obtain cash to use for working capital, equipment financing, expansion capital or to finance advertising.
Receivables Financing is expensive and a great way to look at this type of financing is that it is similar to equity financing. We take equity return rates, but after you pay off the financing, we are gone from your lives (unless you want us to stay). You don’t have to sell a significant portion of your business and you don’t have to deal with a partner that doesn’t share your goals and objectives. And the great thing with Receivables Financing is that if you utilize the financing and grow your business, you can qualify for more as your receivables grow. Allowing you to grow the company and obtain a much higher valuation later when you need that HUGE equity raise. And you never know you may never need it and you can hang on to your whole company.
Just remember there are many different ways to finance your business. If you would like to know more about how KatalystFP can finance your business call us at 1-855-528-3700 or email us at [email protected].
