We've talked about asset lending and cash flow lending as two types of collateralized financing. If for some reason you can't get these or any type of financing - and as a newly emerging entrepreneur you might not - try for what is called "receivable financing." This is borrowing money against the receivables your customers owe. Some banks will do receivable financing. With receivable financing, you will normally maintain the credit relationship by collecting the receivables yourself.
Receivable financing is sometimes referred to as "factoring," and is usually available from other third party lenders such as finance companies which lend you the money you need - or part of it - at interest rates just under what's allowed by usury laws. Most banks will not enter into a factoring relationship. The advantages of factoring are that the finance company becomes responsible for collecting the receivables they buy and for the bookkeeping involved. Also, banks take into consideration that another party has contracted with you to handle collections, so they may become more comfortable in partially financing your entire required amount.
Remember - the main difference between receivable financing and factoring is that, with factoring, you will normally give up control of the paper.
There are about six "paper" classifications of clients who might apply for receivable financing "A" through "F". While an IBM might be an "A Paper" borrower, you'll no doubt be an "F Paper" borrower. It's an expensive proposition, but, as I've said, sometimes "you gotta do what you gotta do.
Sayfa 157Kitabı okudu
17 görüntüleme
Yorum yapabilmeniz için giriş yapmanız gerekmektedir.