All Financing Articles

SBA 8(a) Certification Requirements

By Tricia Tetreault on June 3, 2020 | Business Loans, Financing, How To | Comments (0)

SBA 8(a) certification requirements are primarily focused on the owner or owners of the business, their social and economic status, and net worth. While your business must be operating profitably, there are no debt-service-coverage or credit score requirements. When it comes to qualifying for the Small Business Administration 8(a) program, the certification requirements are, in…

What Is an SBA 8(a) Certification?

By Tricia Tetreault on June 3, 2020 | Business Loans, Financing, What is | Comments (0)

The Small Business Administration (SBA) offers qualifying small businesses the opportunity to apply for SBA 8(a) certification. This certification allows small businesses to contract with the federal government more easily for sole-source contracts to supply goods and services. While the SBA is most often referenced with regard to SBA loans, the agency provides other forms…

How to Complete the SBA 8(a) Application

By Tricia Tetreault on June 3, 2020 | Business Loans, Financing, How To | Comments (0)

Socially or economically disadvantaged small business owners may be interested in applying for SBA 8(a) certification, which allows exclusive access to sole-source federal government contracts. This is not a Small Business Administration (SBA) loan, but rather an opportunity for small businesses to compete for federal government contracts. As with any federal program, there is an…

100+ Paycheck Protection Loan Providers

By Dennis Shirshikov on May 20, 2020 | Buyer's Guide, Financing | Comments (0)

We are monitoring the application availability of more than 100 lenders to ensure small business owners know which local banks, national lenders, credit unions, and brokers are actively lending. This guide will be updated every morning to provide the information regarding the Paycheck Protection Loan is accurate and timely. The above providers are available nationwide…

Current SBA Loan Rates May 2020

By Tricia Tetreault on May 13, 2020 | Business Loans, Financing, What is | Comments (100)

The affordability of Small Business Administration (SBA) loan rates attracts many businesses that may not otherwise be able to obtain affordable financing. Whether you are considering an SBA 7(a) loan, Express loan, microloan, or Community Development Company (CDC)/504 loan, the SBA loan rates you receive will likely be more affordable than most other financing options….

Factoring Discount Rate: What Is It & How It Works

By Dennis Shirshikov on May 12, 2020 | Financing, What is | Comments (0)

The discount rate in a factoring transaction is the fee a factoring company charges to provide the factoring service. It is a percentage of the value of the invoice that a factoring company will charge to process its receivables. A standard discount rate is 1.5% to 2.5% of the invoice value per 30 days. How…

Filling Out an Invoice Factoring Application in 6 Steps

By Dennis Shirshikov on May 11, 2020 | Financing, What is | Comments (0)

An invoice factoring application can be completed in six steps, most of which require providing the information a factoring company needs to approve you for funding. The process can take from one to five days, depending on the number of invoices and the speed with which you provide additional information. Once you complete the initial…

10 Factoring Advantages and Disadvantages

By Dennis Shirshikov on May 11, 2020 | Business Loans, Financing | Comments (0)

Invoice factoring can help small business owners save time, access funding without collateral, finance growth, and receive large amounts of capital quickly. However, there are sometimes drawbacks like reduced control over invoice collections, the stigma of alerting customers to a factoring relationship, the high overall costs, and a reduction in profits. Each of these factors…

What Are Invoice Factoring Terms?

By Dennis Shirshikov on May 11, 2020 | Financing, What is | Comments (0)

Invoice factoring terms include the funding amount, advance rate, repayment terms, personal guarantee requirements, and speed of funding. In general, the most important term to maximize is the advance rate because that directly impacts the cost of capital. The other important term is the funding amount, which you should ensure is sufficient to make factoring…

Understanding Invoice Factoring Rates & Costs

By Dennis Shirshikov on May 8, 2020 | Financing, What is | Comments (0)

The best way to figure out the cost of factoring invoices is to work directly with an invoice factoring provider. Most will charge a discount rate and several fees to ensure they are compensated adequately for the risk they take by providing funding. By understanding the fees and estimating potential costs, small business owners can…

Manufacturing Factoring: When to Use It and Top Providers

By Dennis Shirshikov on May 8, 2020 | Buyer's Guide, Financing | Comments (0)

Manufacturing companies rely on invoice factoring to ensure positive cash flow during periods of growth or spikes in demand. A manufacturing company can receive an order, invoice the customer, factor the invoice, receive the cash, pay for wages and materials to produce the order, and receive the difference when the invoice is collected. The best…

Invoice Factoring Requirements: Does your Business Qualify?

By Dennis Shirshikov on May 8, 2020 | Financing, What is | Comments (0)

Invoice factoring companies have a unique set of requirements that usually don’t include measuring a business’s individual credit or time in business. However, there are restrictions on the type of invoices that can be factored, the creditworthiness of a business’s customers, and even the volume of invoices that need to be factored to qualify. Standard…