Business Funding Alternative to Bank Loans

As a business owner, you’re used to finding resourceful ways to solve problems. If you find yourself looking for an alternative to a bank loan, be assured that today, there are more ways than ever to help you get the business funding you need. When it’s time to expand, or take your organization in a new direction, there are several ways to get the capital you need in order to make it happen. Think about options like mezzanine financing, structured settlement financing or accounts receivable financing to help your company get to the position where it needs to be.

Mezzanine Financing

One way to get the cash your group needs is to consider mezzanine financing. Mezzanine financing gives your business a way to grow by allowing a lender to quickly disburse cash and with no collateral from you. Companies that use this type of business funding usually have a positive profit margin and a solid reputation of success that warrants quick expansion. Lenders are given security by an agreement that allows for equity in the company if the terms of the loan are not met. For successful and popular rising businesses, this type of investment can be the perfect solution.

Structured Settlement Financing

Another way to raise the money necessary for expansion of an organization is by utilizing an award from a structured settlement. A structured settlement is a legal award resulting from a court case such as medical malpractice, a car accident or other lawsuit. Instead of a lump sum, a structured settlement is paid periodically on a specific schedule. If a shareholder has a structured settlement, it is possible to sell the disbursement to a company in exchange for a lump sum. So instead of waiting for the money for years, you can access your cash all at once and invest it back into your company.

Accounts Receivable Financing

In addition, your group can also use something called accounts receivable financing to get a large amount of financing without any real debt. With accounts receivable financing, your firm can sell your customer invoices to a lender. This type of business funding, also called factoring, allows your company to get payments from invoiced customers right away instead of waiting one, two or three months.

If you’re trying to grow your business, and the banks have put up a roadblock, take into account the possibilities available now. Try mezzanine financing, structured settlement financing or accounts receivable financing to make things start to happen for your group today.

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