The Government and Small Business Funding Vs Accounts Receivable Factoring

A tip of the hat to the piece "Stimulus Presents Chances for Small Business" by Hanna Heineman, staff reporter for the Santa Monica Mirror, a piece that talked about a workshop built to aid small entrepreneurs in knowing how they can compete for the stimulus funds from the govt held at the LA Airport Renaissance Marriott on Sept. two. Why? Because understanding the best way to use these government opportunities can be hard, especially for tiny businesses.

Accounts receivable factoring is not a loan but rather a discounted purchase price for existing accounts receivable (or fulfilled invoices) available to B2B companies.

The US growing businesses Administration's representative, Lorenzo Flores, was present, stating that there's "no doubt that growing business is the spine of the economy" so it's important to let them take part in stimulus projects and programs.

Small businesses are outlined as having 100 workers or less. Although the federal government has made it less complicated for home businesses to obtain loans because they are now pledging loans at ninety percent so banks only have a 10 percent risk, the process can be challenging.

Why not look at accounts receivable factoring and other successful techniques? This strategy can be achieved with cash in hand long before a small enterprise can get Small Business Association (SBA) loans, although they don't have any fees.