It is not easy to find working capital to grow your business. And if you are doing all things well, growth consumes even more of your precious money. Increase in sales means an increase in payroll, materials and overhead. Where does a businessman with low capital go?

We will discuss what is available to you and your business. Depending on the amount of time you have been in the business, your type of business, the amount of money you need and your personal credit situation, we will discuss your options.

An Emerging Business:

If you have visited reputable banks, it has probably been a humiliating experience. They are not in the business of lending money to emerging companies unless it is a loan against their personal assets. However, being an emerging company is not a bad thing for all types of lenders. Invoice Factoring Companies  do business with emerging companies. If you can generate an invoice to a creditable customer, then you can get advance money against that invoice. The SBA also offers programs through its Start-Up America Initiative .

If you have at least 6 months in the business and accept credit cards, Merchant Advance Cash Services are available for your business. Seeing your average monthly credit card sales, Merchant Cash Advance Companies advance you money and then are paid through your credit card sales.

In businesses that are less than 2 years old and are losing money:

See the options above in the Emerging Companies section. All are available to you, except SBA. If you have negative cash flow, the SBA options are limited. There is also the new financing option for purchase orders or OC financing. If you have successfully completed a few transactions and have decent gross margins (25% +), then this type of financing is available. Similar to Invoice Factoring, Purchase Order Financing, purchase the products  so that you can complete the order.

All the above and bad personal credit:

All the above and bad personal credit:

The good news is that the Factoring of Invoices, Financing of Orders of Purchase and Advancement of Cash of Merchant are available for your situation. These three tools respectively all look at their ability to generate credit sales, orders and credit card sales from creditworthy customers. Remember to check your gross profit margins nearby, as very low profits will quickly burn your cash, even with the right financing tools.