An invoice factoring transaction typically consists of three parties. They are the factoring company, the seller of the invoice, and the debtor who’s responsible for paying the holder of the invoice. For a small business, the account debtor is the customer who owes the invoice. How an Account Debtor Can Impact Factoring The creditworthiness of…
All Financing Articles - Page 6
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What Is Advance Factoring
With advance factoring, a factoring company pays a business a percentage of future receivables in advance, typically between 75% to 90%. The arrangement between the seller and the factoring company is kept confidential. Hence, the responsibility of collecting on the receivables remains with the small business. This option is rarer than traditional invoice factoring and…
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4 Invoice Factoring Companies With No Credit Check
Small business financing can be difficult to qualify for without a good personal credit score. However, invoice factoring companies rarely check credit scores. Instead, these companies rely on the credit score of your debtors when you assign unpaid invoices to the factoring company. We evaluated over 50 invoice factoring companies and selected the top four…
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What Is Contract Factoring?
Contract factoring is the solution small businesses use for long-term factoring agreements. A small business may contract to factor invoices for a particular project or from a particular customer for an extended period in exchange for paying a lower fee. This ensures the business can receive financing and reduces the research costs for a lender….
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SBA Form 413: What You Need to Fill Out the SBA Personal Financial Statement
SBA Form 413 is a personal financial statement form used to apply for Small Business Administration (SBA) 7(a) and SBA 504 loans. Your lender will incorporate the personal financial information you report into its analysis of your company’s creditworthiness and repayment ability. To complete SBA Form 413 quickly and easily, have your financial paperwork organized…
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SBA Loans: Types, Rates & Requirements
The Small Business Administration (SBA) guarantees business loans issued by approved lenders. SBA loans, though difficult to qualify for, carry low interest rates up to 11% with terms up to 25 years. The six types of SBA loans are 7(a) loans, community development corporation (CDC)/504 loans, CAPLines, export loans, microloans, and disaster loans. Types of…
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50+ Paycheck Protection Program Loan FAQs
The Paycheck Protection Program (PPP) is a new loan from the Small Business Administration (SBA) intended to help businesses meet payroll costs. The loan can be forgiven and converted effectively into a grant for up to eight weeks of qualified expenses. We’ve collected questions from around the web and on Facebook and provided answers to…
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SBA Form 1368: The Ultimate Guide
SBA Form 1368 offers small business owners the opportunity to show the financial impact of an economic disaster on a business. It comprises three sections that require you to disclose monthly sales figures, an economic forecast, and additional information not captured in the forecast. The last part is an important opportunity to explain any details…
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SBA Economic Injury Disaster Loans: What You Need to Know
The Small Business Administration (SBA) offers Economic Injury Disaster Loans (EIDLs) during times of economic crisis. The SBA makes these loans directly to small businesses that have been impacted by an economic disaster to save them from failure. These loans often are made in the wake of a physical disaster, like a hurricane, although the…
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Best SBA Lenders: Top 100 SBA Lenders
With more than 3,000 SBA lenders nationwide, choosing the best SBA lender can be difficult. Some of the best lenders approve average Small Business Administration (SBA) loan amounts ranging from $75,000 to $1.5 million, with interest rates averaging 6.5% to 9.4%. We’ve provided reviews for the top 10 SBA lenders and listed the top 100…
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Paycheck Protection Program Loans: The Ultimate Guide
Small business owners can borrow up to $10 million to pay for payroll, rent, mortgage interest, and utilities under the newly available Paycheck Protection Program (PPP) Loan. The loan is available from any Small Business Administration (SBA)-approved lender as well as through online loan brokers. Loan proceeds used for eligible expenses will be forgiven for…
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What the COVID-19 Stimulus Package Means for Small Businesses
The United States Congress has passed several measures in response to the COVID-19 pandemic designed to help small businesses, including tax rebates, tax-filing extensions, business loans, emergency relief, and modified tax treatment. Perhaps the most significant benefit, the paycheck protection loan—also known as the coronavirus loan—can convert into a grant for small business owners that…
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