Five Questions to Ask When Considering Contract Financing

Five Questions to Ask When Considering Contract Financing   Contract Financing is an alternative form of financing that allows companies to access working capital by using the proceeds from an in-progress or upcoming project as collateral for a loan. Contract financing loans are underwritten based on the characteristics and value of the contract that the business is bo...
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Five Financial Hacks For Small Business

Five Financial Hacks For Small Business   For many small business owners, running the company is the easy part. It is managing the finances that can cause the most stress. But how a business manages its money and cash flow is as critical to success as the product it produces or the service it provides. Here are five financial hacks that can help business owners manag...
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Contract Financing

Contract Financing is an opportunity for companies to access working capital by using the proceeds from an in-progress or upcoming project as collateral for a loan. Unlike traditional business lending, Contract Financing loans are underwritten based on the characteristics and value of the contract that the business is borrowing against, rather than the companies credit history....
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Consumers Confident Amid Market Turmoil

U.S. consumer confidence remained strong as world stock markets entered into a period of turmoil due to a significant drop in Chinese stocks. The monthly confidence numbers, which were reported recently by the Conference Board, set a seven-month high watermark in August. This, along with positive news from the housing sector, indicates strength in the U.S. economy. However, the...
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Options for Businesses Caught in Middle of U.S. Export-Import Bank Battle

Last month the U.S. Congress left Washington for the 4th of July recess without reauthorizing the U.S. Export-Import Bank, which supports international trade by providing financing for large and small companies. This lapse froze more than $9 billion in import-export transactions, including more than $3 billion in loan guarantees. As Congress returns from their summer break, the...
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Businesses Prepare as Signs Point to Rate Hike

Economy watchers have been waiting all year for signs that momentum in the U.S. economy would necessitate a shift in the monetary policy that has kept interest rates low for several years. That sign came recently when Federal Reserve Board Chairwoman Janet Yellen sent her strongest signal yet that the Fed could start to raise interest rates before the end of the year.  This ini...
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Small Business Outlook Remains Positive

The outlook for small businesses remains strong according to recently released numbers about small business sentiment and borrowing demand. The data, which was released separately by the National Federation of Independent Business (NFIB) and Thomson Reuters/PayNet Small Business Lending, shows that small business optimism remained steady and the demand for small business loans,...
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Five Keys to Purchase Order Financing

Purchase order financing is an effective alternative for companies that have a large order, but need capital to complete it. A purchase order loan uses the value of a confirmed customer purchase order or contract as collateral. A purchase order loan can allow a company that has received an order with large capital requirements to obtain financing and manage the liquidity demand...
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Creating Cash Flow with Contract Financing

Contract Financing is a unique type of funding tool that allows companies to create cash flow from a pending customer contract. This flexible financing tool allows companies, which receive a large order or may not be able to get a bank line of credit, to get the capital they need to complete the project. There are many types of companies that are able to use contract financing ...
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Contract Financing Provides Liquidity

To meet short term liquidity demands many companies are turning to a unique financing tool called contract lending, which allows a company to borrow against a signed customer contract. There are many types of companies that can benefit from contract financing including, fast growing companies, companies that receive a large unexpected order, companies with limited or no credit,...
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Common Cash Flow Management Mistakes

Managing cash flow is perhaps the hardest aspect of growing a small business. Even successful and profitable businesses run into periodic cash flow challenges. There are some common mistakes that business owners often make as they try to manage their cash flow. Understanding these simple mistakes and how to avoid them can make the difference between a business being successful ...
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Case Study: Contract Financing

Our client, a specialty plumbing contractor, received a specific sum contract to complete a complex project for a successful real estate management company.   The client needed to obtain permits, rent equipment and hire additional labor. The contract stipulated that payments would be made to the client based on progress –meaning the work had to be done before a payment would be...
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Case Study: Purchase Order Financing

Our client, a small wholesaler of novelty items, received a large order from a major drugstore chain.   The client had no inventory at the time of the order. The foreign manufacturer required full payment upon completion of the order. Additionally, the shipping company required partial payment to complete delivery to the buyer.  To fulfill the purchase order, the client needed ...
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Debt, the Equity Alternative

Deciding between equity and debt financing is a challenge many new small business owners will face. A loan can be an important part of how you stabilize and grow your company. The decision to obtain a loan adds a significant element to managing your business.  It’s crucial you fully understand the advantages, disadvantages and obligations that come with borrowing before you ...
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