Accounts receivable factoring company.
An accounts receivable factoring company provides businesses with financial assistance. The factoring process is a simple solution and has been used for a long time in handling financial situations.
Here’s how it works: A business sells existing, uncollected invoices to a third party known as a factor in return for immediate cash. Depending on the type of factoring agreement entered, collections on the factored invoices might remain a responsibility of the business or they may become the responsibility of the factoring company. Factoring allows a business to collect full payment on a sale before the collection period has passed.
While factoring requires a sale to be made first (so the business has an outstanding, uncollected invoice to factor) the strength of Bambu Finance’s working capital solutions is that they allow a business owner to cash-in on their future sales. While not exactly the same, our business financing is similar to factoring in that it is an alternative to a small business loan.
An adjustable rate is a specific type of interest rate. When seeking business funding or any type of traditional financing, comparing interest rates is important. Interest rates make a big difference in the payment amounts and overall costs for business loans and are usually based on the prime rate set by the Federal Reserve.
Fixed rate and adjustable rate are the two primary types of interest rates. Fixed rates are interest rates set at the time of inception that always remain the same throughout the length of the loan or financing.
Like fixed rates, adjustable rates are set at the time of inception, but with an adjustable rate, the rate is slightly lower. Both parties usually agree to set this lower rate, knowing that it will later adjust to a fixed percentage over the prime rate.
The advantage of securing your business financing from Bambu is that there are never any interest rate charges.
There are many alternative financing methods that are available to small business owners who do not want to rely on traditional sources (such as banks and their stringent requirements) for funds.
Small business owners often have a hard time meeting the strict credit and collateral requirements set by most lenders to qualify for any form of traditional business financing. Such restrictions cause business owners to seek alternatives to traditional financing.
Luckily, traditional lender financing is not the only way for a business to get money. Bambu provides an alternative to traditional financing for many different types of small businesses with our working capital business financing. Here’s how it works: We purchase a small percentage of your future credit card sales until the payback is completed and give you the cash your business needs now! It’s just that simple.
See, at Bambu Finance, we know that business owners often lack the necessary credit scores and collateral to secure financing. Lenders look at the risk involved in financing and that is going to be determined by your credit history. Unfortunately, individuals with a history of bad credit are more likely to have a late payment and/or to default entirely. Traditional lenders are strict and will usually reject applicants unable to meet the minimum requirements for both credit scores and collateral.
Our program has no personal collateral requirements. Credit scores are reviewed in the qualification process, however, a credit history does not hold the same weight in qualifying for business financing through Bambu. Traditional lenders are limited by a set of rules and regulations. In fact, 80% of merchants who apply for working capital solutions through us get approved. That’s because we don’t require immaculate credit and are much more flexible in our approvals.
It’s important for business owners to know about alternative financing and all other options available to them. Business owners have to face many different financial scenarios and financing options such as a loan, lease or line of credit, may not always work.
Alternative funding is when a merchant secures business financing, which provides reusable means to receive the working capital needed without the traditional financial resources such as a loan or lease from a private lender or bank.
Bambu provides businesses with business financing that they can use for anything – to expand, advertise, purchase inventory, lease equipment, increase cash flow, and so forth. Freedom from fixed payments, stringent terms, and other inflexible aspects of traditional bank loans means more freedom and options to our customers to stabilize or improve their business.
At Bambu Finance, we understand our customers and deal with many different types of businesses. The benefits of our business financing programs are that they are an opportunity for your business to avoid traditional small business financing, a quick way to get money for your business and a simple, effective way to stabilize, improve, and expand.
Business financing is when an outside resource is used to cover a business' financial needs. A loan, lease, or lines of credit are examples of traditional financing options, but business financing may also refer to other financial alternatives. The most common elements in evaluating how a business might finance or cover the costs of different initiatives include business need, available collateral, available down payment, time needed to repay or make payments, and the applicant’s credit score. Out of the many factors to consider in comparing different financial opportunities, these items are the primary starting points.
When a business needs a large piece of equipment, several different financial methods may be available including small business loans, corporate credit lines, an equipment lease arrangement, or a working capital solution. The cost and flexibility a business receives to secure the equipment may vary greatly depending on which of these options they choose. A loan, for example, can take months to arrange, which is usually not the case with a lease or a working capital solution. Sometimes up-front money or collateral is required and sometimes it isn’t.
It is important for a business owner to know and understand all the different options and requirements to find the best funding solutions for their unique business situation.
A business loan is an arrangement in which a lender gives money or property to a borrower, and the borrower agrees to return the property or repay the money, usually along with interest over a period of time. Typically, there is a predetermined time for repaying a loan and the lender has to bear the risk that the borrower may not repay a loan (though modern capital markets have developed many ways of managing this risk). Business loans can be used for different purposes, including purchasing inventory or equipment.
The Small Business Administration (SBA) is a well-known business loan resource. While it does not actually offer loans, it provides a guarantee to the lender in a situation where the applicant defaults on an SBA-approved loan. The SBA guarantee makes it easier for a small or new business to receive financial help due to the smaller risk of loss for the lender associated with an SBA loan as opposed to other loans.
Once approved by the SBA, the business owner will be provided information on SBA-approved lenders offering the financing. An SBA loan can be very beneficial to a small business, but the SBA requirements often become a struggle for the business owners. It is very difficult to qualify for business loans from any lender, even those not connected to the SBA. The three biggest issues for business owners are that business loans will most likely require personal collateral, down payments, and above-average credit scores, causing them to explore other financing options.
There are several different financial solutions available that would offer more flexible and faster results than business loans. For instance, thousands of small business owners have found a working capital solution to be an effective alternative.
Business receivable factoring.
Business receivable factoring is when a third party purchases existing, uncollected invoices from a business at a discounted rate. In return, the business receivable factoring company gives the business money. The business receivable factoring company then gets paid as invoice payments are collected.
Business receivable factoring is often needed by businesses when there is a long delay (typically 60-120 days) between when they invoice their customers and when they collect the money. Many businesses sell products that allow customers 6-12 months to pay. This can create major cash flow issues for even the largest companies. Business receivable factoring companies have been around for many years because of the nature of how many companies extend terms to customers.
Bambu's business financing programs have many similarities to business receivable factoring, however the two are quite different and should not be confused. The biggest difference is that business receivable factoring requires a sale be made before it can be originated. Our program is based on future credit card sales, therefore it does not require the sale to have taken place.
Buying out a partner.
Many businesses today are formed in partnership. Two or more people are joining together to invest and grow a business. In some cases, partnerships go on forever until the business is sold to a third party. Unfortunately, this is not always the case. What often happens is one or more of the partners don't get along, therefore, creating an opportunity for the remaining partners to buy out the other partners.
When buying out a partner, there are a multitude of factors to consider, including how much the remaining partner(s) should pay for the other partner's interest. Will the buyout be a cash buyout or will payment arrangements be made over time? For the purchasing partner, he/she can often get the best price if it is a cash offer. This will entice the selling partner to accept the offer.
The single most important issue faced in buying out a partner is where does the money come from to allow for the buying out of a partner? Working capital business financing can be used very effectively in these situations.
Here’s how such a scenario would work: Let’s say the purchasing partner and the selling partner own a restaurant that processes $100,000 per month in credit card sales. Together they obtain $150,000 in business financing from a company like Bambu Finance. The money is used to pay the selling partner for his/her interest. The purchasing partner then continues to operate the business and pay off the working capital financial solution. This is a win-win.
The business financing in this example is used to buy out a partner. The restaurant continues to operate as usual only now paying down the amount of their business financing using a small portion of the credit and debit sales until it is completely paid off.
The credit and debit card sales of the business are used to obtain the business financing. The selling partner is happy because they receive upfront money. Meanwhile, the buying partner is happy because he/she doesn't have to come out of pocket money to make this possible. This is a painless process for both parties.
Are you looking for the cash to buy out your partner? Working capital business financing from Bambu Finance may be just what you’re looking for.
Cash flow is what powers and propels small businesses and is a measure of a business’ financial health. By definition, cash flow is cash collected minus cash paid out. Often times, small businesses struggle with cash flow management. That’s because while they may have accounts receivable or money owed to them, it can often take up to 120 days to collect. This can cause major cash flow problems for a business owner who is not properly prepared. Other cash flow problems can occur during high-growth periods when a business is spending significant sums of money for advertising and equipment but is slower to bring in cash.
It is important for business owners to utilize all available resources to maintain cash flow. You need to stay ahead of your competition. One way to do that is to ensure you always have access to working capital to maintain and grow their business. Many small and medium-sized businesses may not fit the mold for traditional banks and lending institutions. They may try to apply for business loans and get denied after a lengthy process just to learn that the bank doesn't understand how their business functions. This can be frustrating to say the least.
Bambu Finance understands the cash flow needs of small businesses. We know that those businesses need access to capital to grow stronger. That’s why we’re even willing to work with many businesses whose lack of pristine credit or collateral means they’ll have a difficult time securing funding from a traditional lender. We are able to provide the working capital a business needs to survive. Our business financing programs are a perfect way for you to secure the working capital you need to maintain your cash flow.
Best of all, you can use the money however you want. Then you simply pay it back via a small, fixed percentage of your future credit and debit card sales. If business picks up, you pay down your balance quicker. If your business slows down then you pay less. The program is completely flexible and allows you to manage your cash flow effectively. In fact, our business financing programs are so good that 85% of our merchants come back for more working capital. This becomes a great resource for businesses to use. If you’re interested in learning more about how our business financing programs work, click here.
The term small business can change by industry and country, region, etc. In general terms, a small business has a small number of employees and is typically not dominant in its field of operation. In America today, “small business” commonly means having less than 101 employees.
Most small business must have a different approach to financial matters. While accessing income produced by the business is often a fine solution, at times it’s important for a small business to go elsewhere for resources to receive capital. Some methods are small business loans, leasing, private equity, etc. These methods require that the small business owner has a solid credit history and a detailed business plan for eligibility, not to mention collateral to put up to secure the loan. While interest rates are comparably not high, these loans may take months to secure. That is the dealbreaker for most small business owners.
Small business owners may seek different avenues to secure financing, like factoring accounts receivable and working capital solutions. Options like this can have a higher cost than a loan product, but there are some real benefits. For instance, alternative lender Bambu Finance will provide working capital to business owners who have a credit score as low as 500, whereas most common sources typically would not consider approving a merchant's application unless their credit score is above 700. Plus, securing the working capital you need from Bambu can happen in as little as one business day, not months.
Small business owners know the challenges in obtaining working capital. A good method is to research and do your due diligence. At Bambu, our business financing solutions are unique to the needs of your small business. Call or email us today for a quick quote!
Small business loans.
While most people believe small business loans are issued from the government, they are actually received through banks and other financial institutions. The Small Business Administration (SBA) may offer backing to qualified loan products. When a loan and lender can qualify the criteria established from SBA loan products, the loan is allowed a guarantee of repayment by the SBA. That makes, SBA loans not as risky for lenders. The problem is this: Most small businesses find that SBA loans are very hard to obtain.
Unfortunately there are more than 5,000,000 small businesses in America who presently could use the capital that these products offer. Even with 9,000 lenders who offer so-called "normal" loans to big businesses, small business owners often run into trouble when trying to secure such financing.
Many small business loans have strict criteria to qualify. The lenders often want an exceptional credit score, personal collateral, and a large down payment to even review an application for a small business loan. That is why small business owners have a hard time with these guidelines. Most need the working capital but frankly just won't qualify. Worst of all: Most small business owners don't even know there are other options out there.
Bambu Finance is a strong partner to thousands of satisfied business owners who have successfully used our working capital solutions to get funding to help their businesses grow stronger. Our clients know the variations between small business loans and our working capital business financing solutions.
Our business financing solutions are not loan products so they fall under a different set of rules and covenants, which allows us to look at the positives of small businesses, instead of just the negatives. Therefore, the guidelines for qualifying are not as demanding compared to that of small business loans.
For instance, Bambu Finance does not require a down payment or personal collateral to get your working capital. Although your credit score is looked at as part of the qualifying process, that FICO score carries less meaning than it does when applying for traditional financing. While a bruised credit report is usually an automatic disqualifier when attempting to secure a small business loan, that is decidedly not the case with a business financing solution from Bambu Finance. Best of all, while it can take months to secure a business loan, we can get you the working capital you need in as little as one business day. Although small business loans can work, small business owners need to know all of their options. By understanding the benefits and restrictions of each financial product, small businesses should be ready to match their individual needs with a solid solution.
Traditional bank loans.
Traditional bank loans are a form of financing offered to businesses to help them stabilize inconsistent cash flow. That said, the demands of small businesses are broad. Often, given the business owner's needs and their particular business situation, a traditional bank loan may not be a viable option. For these type of merchants, there are other options.
One popular way to get the business financing you need is through a working capital solution from Bambu Finance. A working capital solution is not a loan. Because of the hassle-free application and approval process, working capital business financing appeals to many small and mid-sized business owners.
Traditional bank loans guidelines are high; they expect perfect credit history, secure collateral, and usually a large down payment. The whole process can be very time-consuming with piles of complex paperwork to complete. The waiting time to get approved is usually months. A working capital solution from Bambu Finance, however, is different. Personal collateral is not necessary, there is no down payment, and the whole process is fast and easy, in many cases we can even offer funding in as little as 24 hours.
While traditional bank loans often must be for a specific purpose, our business financing solutions don't have these restrictions. With a working capital solution from Bambu Finance, you are free to spend the money on anything you want!
Having trouble qualifying for traditional bank loans? Know that there is an alternative out there: Securing the working capital you need from Bambu Finance. We would encourage any small business owner to look beyond traditional financing and experience the ease, simplicity, and benefits of working capital business financing.
Unsecured business loans.
Unsecured business loans are loans that are not secured by collateral. Usually, lenders have only the business credit history and the owner's credit to rely on in deciding whether to offer a particular loan. Oftentimes, a lender will give unsecured business loans only to clients who demonstrate an exceptional ability to be current with all debt.
Many of Bambu's clients find that our working capital business financing is a better and easier alternative. Increasingly popular with small businesses across the country, our working capital solutions are a quick and excellent solution for many small and medium-sized businesses.
Working capital solutions are not loans. They are financial products that do not require personal collateral or an excellent credit history. These unique business financing solutions are becoming more and more common and are easier for most business owners to secure than an unsecured business loan from a bank. Best of all, the application process is quick and easy and you can have your funds “in-hand” in as few as one business days.
Working capital factoring.
When an operational small or medium-sized business is seeking working capital, factoring is one course of action to research and thoroughly understand. Factoring is when a business accumulates cash or cash equivalents. The business then sells the uncollected, pending invoices to a third party a.k.a. "a factor". The factor pays the business a discounted percentage of the face value of the invoices, which occurs quite frequently. The business is then able to use the cash given for any purpose. Due to the type of factoring agreement a business has, the responsibility to gather the invoices could still be on then, or it could be assumed by the factor.
Small business owners tend to access working capital factoring for select reasons. All businesses need cash flow in order to stay afloat, but a lot of times a small business owner might not like the demands and constraints of traditional bank loans. Factoring functions under a different set of rules and arrangements, which makes it easier for many businesses to qualify to use this type of financing.
While factoring is one option for receiving business financing, there may be other solutions suitable for overcoming cash flow strains within a small business. One option is securing a working capital solution from Bambu Finance. Our working capital business financing is comparable in some ways to factoring, but these two options should not be mixed up.
Like factoring, our solution does not require exceptional credit (all you need is a minimum FICO score of 500) it has no restrictions on use, and it can be presented and arranged almost instantly. While factoring needs a sale to be made to make an outstanding, uncollected invoice, our working capital solutions will only be based on your future credit card sales volume.
If you’re looking at factoring, we urge you to first look into securing your business financing from Bambu. The difference in what you could be saving means more money for you and your future success!