Days beyond terms (DBT) is the number of days a business takes to pay its bills past the corresponding due date. Lenders use this metric as a proxy for the financial health of a business’s receivables. In invoice factoring, DBT plays a large role in the rate that a business receives on financing. Why Days…
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What Is a Factoring Reserve Account?
The factoring reserve is the amount a factoring company holds in reserve until a debtor pays the invoice. Once the debtor pays the invoice, the factoring company pays the reserve—or rebate—to the business that sold its invoice to the factoring company. The factoring company keeps a percentage, called the factoring rate, which is its fee…
7 Best Small Business Lines of Credit 2020
*Last Updated: January 2021 How We Evaluated the Best Business Lines of Credit When evaluating the best business lines of credit, we considered rates, terms, qualifications, and funding speed to be equally important. While most traditional lenders offer better rates, they also have higher qualification requirements and slower funding speeds on lines of credit. We…
NYC Offering Grants for COVID-19 Affected Small Businesses
In an effort to assist small businesses in New York City that have been adversely impacted by the COVID-19 outbreak, the city has established the NYC Employee Retention Grant Program. This program is aimed at helping small businesses retain employees during a time of decreased business revenue. Small businesses that have experienced at least a…
What Is Cash Back & How Does It Work?
Cash back is an incentive credit card issuers typically offer that refunds a small percentage of a cardholder’s purchases. You can apply your cash-back rewards to your credit card bill or redeem them as a check, bank deposit, for merchandise, or for store gift cards. Cash-back rewards usually range between 1% and 6%. Most credit…
5 Best Unsecured Business Loans 2020
Some business owners can’t or don’t want to pledge specific assets—personal or business—as security for a business loan. Many traditional lenders require business loans to be supported by collateral, such as real estate or equipment. The best unsecured business loans offer large amounts of funding—quickly—with easy-to-meet qualifications. Top 5 Unsecured Business Loans *Last Updated: January…
SBA Disaster Loans: Interest Rates, Qualifications & How to Apply
Small Business Administration (SBA) disaster loans provide businesses with affordable financing for disaster recovery. Businesses, nonprofit organizations, homeowners, and renters are eligible for funding with repayment terms up to 30 years and interest rates starting at 1.75%. Applicants can receive initial funding five days after signing loan closing documents. If you want to apply for…
8 Best Alternative Business Loans
Alternative business loans offer flexible credit requirements, easy online applications, and quick access to funds for small business owners that don’t qualify for traditional financing. Alternative business funding encompasses several financing solutions, including short-term working capital, long-term equipment, inventory, and real estate financing. 8 Alternative Business Funding Options Best for working capital: Best for minor…
Rollover for Business Startups (ROBS): The Ultimate Guide
A rollover for business startups (ROBS) allows you to invest retirement funds from a 401(k) or individual retirement account (IRA) into your business without paying early withdrawal penalties or taxes. A ROBS isn’t a business loan or a 401(k) loan, so there’s no debt to repay or interest payments to make. Most small business owners…
How to Use a 401(k) to Start or Buy a Business
There are three ways you can use 401(k) business financing to start or buy a business. You can cash out funds, borrow against them, or use a rollover for business startups (ROBS). The only option that does not result in penalties, taxes, or interest charges is a ROBS, making it ideal for most situations. If…
5 Best Rollover for Business Startups (ROBS) Providers 2020
A rollover for business startups (ROBS) is a financing solution that lets you start or purchase a business with your retirement savings without paying early withdrawal fees or tax penalties. These transactions are difficult and confusing, which is why we recommend using an experienced ROBS provider. We’ve compared the best ROBS providers for startup businesses….
BlueVine vs Fundbox: Costs, Terms & Which Is Best
BlueVine, an invoice factoring provider, offers business owners the opportunity to sell their invoices at a discount to receive funding up to $5 million. Fundbox offers business owners a line of credit up to $100,000 with easier-to-meet requirements. BlueVine is the best overall option because it offers invoice factoring in addition to short-term loans and…