FACTOR KING, LLC BBB Business Review
Chat with a Factoring Specialist.

Quick Contact Form

You have questions? We have Answers!
Chat
with a live representative;   Call toll free: 888-919-7770;  fill out our Apply Now form or fill out our Quick Contact Form below:














Message:


Please answer the following question to help us prevent spam from getting sent to our inbox:
5 + 5 =

Entries in financing (4)

Tuesday
Feb042014

Top Stories in Business and Finance - January 2014

FACTOR KING® offers this quick monthly rollup of important stories related to business and finance. We also track leading economic indicators each month giving you a quick snapshot of the status of the economy. This is the top business and financial news for January 2014.

Click to read more ...

Wednesday
Oct022013

In the News: Top Stories in Business and Finance for September 2013

Factor King offers this quick monthly rollup of the most important stories related to business and finance. These are the top stories in business and finance for September 2013.

Click to read more ...

Friday
Mar292013

Bigger isn’t always better. Microfinancing is helping businesses grow

There was a time, not too long ago, when raising cash through venture capitalists was the way to go. But, in the last few years more small business owners have been taking a road less-travelled to funding: Microfinancing.

Although the numbers vary by lender, most microloans are under $25,000. According to a recent report in Entrepreneur Magazine, non-bank lenders such as Accion USA and the San Francisco Bay Area’s Opportunity Fund provide loans that average just $7,000. And, even more surprising is that these same lenders say that the businesses they lend to have a survival rate that’s more than twice the national average with repayment rates being about equal to traditional banks.

In part, micro lending as a practice has been growing as many banks continue to struggle to serve the needs of small business owners.

Experts in microfinancing believe that borrowers do better than owners who've gone the route of traditional banks or credit cards due to a variety of reasons including more thorough screening, where Micro lenders take care to better know business owners personally, a practice that is not generally employed by traditional banks.

In addition, microloans are often made in a group setting where business owners support each other and are also financially accountable for each other’s loans.

Moreover, smaller-scale loans help entrepreneurs stay focused on their business and less likely to get caught-up in over-expansion.

For those small business owners interested in giving microfinancing a shot, here are some great ways to help get started:

SBA’s Microloan ProgramThe SBA provides small, short-term loans available to small businesses and certain types of nonprofit organizations through specially designated intermediary lenders. The intermediary lenders make loans to eligible borrowers where the maximum amount is $50,000 but most microloans average about $13,000. Terms vary but most SBA microloans can be used for working capital, to purchase inventory or supplies, furniture or fixtures and machinery or other equipment.

Accion USA—Accion is a leader in U.S. microfinance and has been in existence since 1991. The company is committed to helping microentrepreneurs secure affordable small business loans. They lend with the mission of empowering small business owners by providing access to working capital and financial education.

 

Opportunity Fund--Opportunity Fund, based primarily in California, is a not-for-profit social enterprise that has helped scores of families build financial stability. The organization brings together microloans for small businesses, microsavings accounts, and community real estate financing.

However, microfinancing does have its limitations such as generally smaller loan sizes and certain restrictions on the types of activities that capital can be used for. For example, the SBA stipulates that its microloans can not be used to pay down existing debt.

So, still other small businesses might benefit from less restrictive ways of raising capital, such as short-term loans or factoring.