by speedadmin | Sep 21, 2022 | Blog
When you need working capital and your business uses invoice billing, the go-to solution is often accounted receivable financing. You can get the cash you need without adding debt to your company’s credit record, and you also get to outsource a portion of the collections process so you also save labor. Financing receivables is not the only way to accomplish this goal, however. Under the right circumstances, purchase order financing can provide you with an even more cost-effective way to access the capital you need.
Similarities Between Financing Methods
Both of these financial products are based on factoring, one of the oldest methods of commercial financing. They are each a little different, however. Being based on the same original product does make them very similar in a few key ways, though. Both require you to have customer orders in one state of fulfillment or another.
Financing accounts and purchase orders also mean directing customer payments to the lender, another point they have in common. There is also the fact that both cash advance methods provide you with flexible capital, and neither shows up as debt on your credit report.
When To Finance Purchase Orders
The biggest difference between the two forms of financing is that purchase order financing is based on outstanding orders and not completed invoices. That makes it an ideal way to raise the capital needed to fund a project’s supplies and labor costs. With the right approach to pricing, you can even use it as a standard method of financing rush orders.
Since rush orders are usually priced to include a premium for the inconvenience, it is easy to fold the cost of financing into the order. This allows you to save your invoices for regular cash flow financing and prevents large and unexpected orders from disrupting that rhythm.
When AR Financing Has the Advantage
As efficient as financing your purchase orders can be, it is not an everyday solution for most businesses. For starters, you need to have purchase orders, which limits this form of financing to manufacturing and trade-based businesses. This also means you usually do not have as wide a collection to finance at once as you would if you were financing invoices.
In the end, purchase order financing can fill in the gap in your financial reach at opportune times, but it’s a good idea to plan to use both accounts receivable financing and purchase order advances to keep cash flowing through your business.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Sep 16, 2022 | Blog
When people need something these days, they rush to the internet to find the solution. As the leader of a company, you want to be the one providing the answer. Unless your website appears toward the beginning of search results, potential customers are likely to patronize other businesses. Even if your business shows up, you can likely benefit from having a better Google ranking. Here are a few reasons why the search results you’re experiencing might be less than you desire.
Not Enough Time Has Passed
It takes a while for Google to identify and categorize everything on the internet. Your site might not have been spotted by the search giant’s spiders yet. These programs have to comb the entire web for anything new. The same applies to improvements regarding search engine optimization. The benefits of tweaks do not appear immediately. Usually, it takes between four months and a year before there are positive results.
Keywords Are Wrong
By now, most entrepreneurs understand the importance of keywords. If you’re unfamiliar with the concept, they are strategically used words designed to help browsers find the information they seek online. Google categorizes its results according to the language it scoops up from websites and within the code that instructs how they should be displayed, making keywords a vital factor for every business leader looking to boost online visibility.
There’s a possibility you’ve already included keywords within your site, but the ones you’ve chosen are ineffective. The language you employ must match what potential customers are typing before they hit the search button. Think about what words someone needing your services would use and rewrite your site’s text to match these queries.
Your Domain Has Problems
Sites that are appealing, functional, and enjoy plenty of traffic receive favorable attention from Google’s algorithm. Maybe your site needs a refresh. Review yours and try identifying significant problems. Do all the links work? Is the content outdated or poorly written? Consider load times. Are bloated graphics or animations slowing the response? Make design changes as applicable. If your domain has a visitor counter, delete it posthaste; having one is a sure sign of irrelevancy. Besides gaining attention from Google, these changes are likely to improve what others think about your venture.
Getting your operation to the top of Google’s search results is a worthwhile objective. Achieving this goal requires rethinking one’s online presence and taking specific actions. Remember the reasons why your ranking may be unfavorable when pursuing better positioning.
Business owners know that you get what you pay for. When it comes to digital advertising, this principle is essential for success. Don’t risk something as important as your company’s online reputation. Entrust your digital marketing to experts. At Speed of Light Funding, we’ve been providing state-of-the-art marketing services to business owners for a long time.
by speedadmin | Sep 14, 2022 | Blog
Buying a commercial property can be a confusing and intimidating process for even the most seasoned real estate investor. You should have a strong understanding of the commercial real estate market and the fundamentals of property ownership before diving into this venture. Read on for detailed advice on how to start investing in commercial properties.
Take Pictures
You’ll want to take pictures of the interior, exterior, and any special features of the building before you make any purchasing decisions. It’s also a good idea to take pictures of the property from the street. Then, take a separate set of pictures of the exterior of the building; make sure you capture the condition of the roof, the sign on the building, and any other features of the property that are relevant.
Research Properties
Before you go out and buy a bunch of real estate properties, you’ll want to conduct some basic market research. Your findings should help you determine the current demand for real estate in your area and the pricing trends for similar properties. You can also conduct online market research by entering your specific area, the types of properties you’re interested in, and the price range you’re interested in. There are plenty of online tools that can help you with this.
Estimate Value
Once you’ve completed your market research, it’s time to estimate the value of the property. For this, you’ll want to use a basic valuation model. You should start by looking at the income and expenses of the property. From there, you can adjust for any market risks that may affect the property’s value, such as potential rent increases or construction costs.
Get Pre-Qualified for Loans
After you’ve completed your market research and analyzed the financials of the properties that you’re considering purchasing, it’s time to start the process of pre-qualifying for loans. For this, you’ll want to work with your bank or other financial institution to determine what kind of loans are available to you. Commercial real estate loans are the most common type of loans that are used to purchase commercial properties. If you want long-term financing, an interest rate reset loan might be your best option. But if you want a shorter term, a balloon payment loan might be the way to go.
By now, you should have a good understanding of what it takes to buy a commercial property. By factoring in all of the details, you can start making your investments worthwhile.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Sep 7, 2022 | Blog
If your business depends on equipment to generate profits, you probably use it many times a day. When you first apply for equipment financing, the machinery looks so new that you probably instructed your workers to take extra care of it.
As the months and years go on, though, and scratches or dirt start to show up, it’s easy to start to take equipment for granted. Resist that temptation. Equipment maintenance is a long-term investment in your company’s financing health.
Equipment Financing Power: What Is Equity?
One of the most important reasons to keep your equipment in good repair is because it can be a valuable source of equity for financing. Equity refers to the value of business assets. When you own heavy machinery or other types of equipment, they can help you secure other loans.
For example, if you want to purchase a piece of real estate for your business one day, most banks will ask you for collateral. Heavy equipment is an excellent source of collateral that helps reduce risk and lets you qualify for better interest rates.
What do lenders use to determine how much financing you can qualify for? Generally speaking, they look at your equipment’s equity. When construction equipment has been properly maintained, looking, and working well, the machinery has a higher market value. That means you can get a larger loan and have an easier time qualifying.
Profits for Your Business
When you choose equipment financing, ongoing maintenance is stressed by the lender. This matters for protecting your investment, and it’s good for your revenue as well. Think about it: The better your equipment runs, the more money you can make with it.
Careful maintenance helps improve profits in several ways. Avoiding premature wear and tear means the machinery lasts longer. Instead of getting 10 years of service from a backhoe, you can get 25 years or more with good maintenance. Once you’ve paid off the loan, every additional year represents a huge increase in your return on investment.
The Biggest Problem with Downtime
Maintenance is especially important for the machinery that your company uses day in and day out. These vital pieces of equipment are key to your company’s services. If they break down, it doesn’t just mean you have to hire a mechanic; it means your entire work process comes grinding to a halt.
You lose money and have to pay employees to wait around until the equipment is up and running again. It’s better to maintain equipment and avoid breakdowns in the first place.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Aug 31, 2022 | Blog
If you have watched television in the last 20 years, you have inevitably seen a show about flippers. You may even know someone involved in the fix and flip real estate investment industry. It is exciting to think that you can purchase a property below its market value, fix a few things inside, and sell it for a profit within a few months. If you are considering this type of investment, these are a few tips you may consider.
Evaluate What You Can Do
You should purchase a home with the thought that it will be a great learning opportunity. Every month you own the home, you have to pay the mortgage, and these carrying costs add up quickly. If you pay too much in carrying costs, you could lose money on the flip. Therefore, you need to understand your skills and what projects you need to hire someone else to do before you make your first purchase.
Build Key Business Relationships
Real estate investment success is heavily dependent on your investment team. For example, you should work closely with a real estate agent, attorney, and mortgage broker. Make an effort to get to know local inspectors as well. You should also have close relationships with at least one construction contractor. The quicker you can get through the purchase, renovation, and sales process, the more money you can make on your investment.
Set a Budget
You should budget your initial purchase price as well as what you expect to spend on the renovation. Work with your contractor to keep your costs down. Having an inspection can protect you from unexpected costs as well. When you purchase a flip, you shouldn’t expect to install the highest quality items. You are doing mostly cosmetic updates. If you are doing more in-depth renovations, be sure that you can get the money back out of the house.
Be Patient
Do your research on the home, neighborhood, and expected return. Pay special attention to your financial calculations. Search for the right house, one that you can complete quickly and make a high return on your investment. Do your due diligence so that you know everything that needs to be done to each home before you make offers. Don’t be afraid to walk away from a bad deal.
However, don’t expect to become rich overnight. It will take time to complete the renovations and sell the home. You may also experience delays, especially with inspections. You may make mistakes, but each flipping process should get easier, but it will take diligence and consistency to start earning a significant, regular income.
Take your time and learn what you can about the fix and flip process.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Aug 24, 2022 | Blog
If you have a small business, you are probably always looking for ways to help it grow or become more efficient. Even if you are not looking at growing your business, some tips can help your business run more smoothly. It is essential to continue to educate yourself and connect with other business owners that can pass along knowledge and information to help you. Running a company can be challenging at times. However, with research and preparation, you can create a successful organization. Here are some small business tips to help your business be its best.
Have a Plan
Before you even start your organization, you need to have a plan. You should know how you intend to make money, how much you will charge, and how you plan to market your business. These are all essential points to be aware of when starting a small company. Other small business tips include choosing a location and conducting market research on what you plan to sell. Many businesses do not succeed because they do not have a plan. You can put yourself on the path to success by thinking ahead and mapping out what you need to do.
Find or Make An In-Demand Product
Another reason why businesses do not succeed is that they sell items no one wants. It is why market research is necessary before you start making the products. You may think that the product is excellent, but that does not mean people will buy it. Create personas, conduct surveys, and see what people’s feedback is.
You do not have to make your products. Instead, you can source them from a wholesaler or small boutique. It depends on what your niche is. However, ensure that your supplier has quality products before ordering. If the product is of poor quality, it will reflect poorly on your business.
Create a Marketing Plan
Of all the small business tips, creating a marketing plan is one essential one. If no one knows about your product, they will not buy it. You have many options when marketing, from digital ads to social media. Both of these options are cheaper than traditional advertising. It is why business owners use them. Plan your ads and social media posts, and decide what platforms to use.
Small businesses can be successful if they implement these tips. Owners have to work hard when they have a business. However, if small business owners research and have a marketing plan, they have a better chance of thriving.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Aug 19, 2022 | Blog
Businesses need to take advantage of the increasing world of digital marketing to improve business growth. A successful marketing plan puts your product or service in front of the customer wherever that customer is located. Traditionally, that customer was in front of a television, radio, or newspaper. With evolving technology, opportunities to reach customers digitally are endless. Here are some benefits of building a digital marketing plan.
Build Brand Awareness
Digital technology is not always about finalizing the sale. Much of your content is designed to build customers’ comfort with your product. It is important to nurture your customer through and after the sale. This technique allows you to create a customer base that is more likely to provide repeat business. Don’t forget that you still need components to close the sale. You cannot expand your business by simply being an information resource.
Reach Customers Immediately
Handheld technology allows customers to make spur-of-the-moment decisions. Websites need to be mobile-friendly. Make sure your app recognizes when a user is in your physical store. Communicate with customers in your vicinity by using push technology.
Digital marketing allows you to take quick action if you predict an opportunity from which your business will benefit. You have a library of resources that can be modified and released before your competitors take action.
Approach Multiple Demographics
A frequent business growth strategy involves identifying a secondary market for your product or service. Using digital resources to reach that market is very cost-effective. Many existing components can be modified for the new market and rolled out quickly.
Scale Your Message
Most digital resources are low-cost compared to traditional advertising. Blog posts and testimonials posted on your website are inexpensive to create. Once your website is coded to allow you to post material, you have an endless opportunity to reach customers. Incorporate free resources into your strategy to help marketing dollars stretch farther.
Build Online Reputation
Most prospective customers examine reviews before making a purchasing decision. Encourage customers to submit product testimonials and place them on your website and social media. Monitor online review sites to ensure that your company is accurately represented. Responding to positive and negative reviews allows customers to see your commitment to customer service.
Staying aware of your market and seeing the potential in reaching other markets is an important strategy for business growth. Keeping an eye on the ever-changing opportunities that technology provides is critical for your business.
Business owners know that you get what you pay for. When it comes to digital advertising, this principle is essential for success. Don’t risk something as important as your company’s online reputation. Entrust your digital marketing to experts. At Speed of Light Funding, we’ve been providing state-of-the-art marketing services to business owners for a long time.
by speedadmin | Aug 17, 2022 | Blog
Running into a surprise financial setback or two tends to be a commonplace aspect of operating a business. Unfortunately, some hits to your budget have a way of causing more disruption than others. What’s worse, you may not always be expecting where these money troubles are originating. This is especially true if you find yourself in a position where your clients are not helping you with timely payments for services or products that you have provided. In this scenario, it can be a good idea to take a closer look at alternative financing options like factoring solutions.
How the Problem Impacts Your Business
Though your clients are directly responsible for your success in most respects, you never know when they will cause you stress. If a customer does not pay you on time for a service, it might not strike you as a huge issue right away. However, the problem can easily get out of control the longer the payments are delayed. Since you rely on this money to act as your working capital, a setback in this regard can easily cause you to fall behind on other more pressing aspects of your business.
How to Respond
A solution like factoring is a straightforward one to understand. Also referred to as accounts receivable financing, this is a service that is centered around using your unpaid invoices as collateral. The invoices are reviewed by a lender and qualifying receivables are purchased from you. The lender provides a percentage of the total value of the invoices as an advance, then assumes the responsibility of collecting the debt from your client. After you pay a fee and the debt is collected, you will be given the difference that you are owed.
How Your Benefits
Countless benefits come along with using a service like accounts receivable financing. When you find yourself in a position where your customers are not paying for services, you do not want to just sit around and hope for the best. By taking action and looking at solutions, you can stimulate cash flow without having to resort to desperate measures. Since this service is an advance, there is no need to worry about falling into extra debt. All you need to do is remain mindful of the fee you are required to pay for AR financing solutions.
When it comes to your budget, you always want to remain mindful of problems that can appear and cause you major headaches. Take time to look at the details surrounding factoring and see if it is a good fit for your needs.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
by speedadmin | Aug 10, 2022 | Blog
Cash flow is key to the success of your business. Unfortunately, it is rarely easy for many business owners to guarantee the access to working capital that they require. Whether you are looking for funds to cover operational costs during a period of slow sales or you are interested in obtaining extra cash so that you can expand your services, you will benefit greatly by looking at all of the options available to you. One great fit for many is a merchant cash advance. Review this guide and gain more insight into your options.
What is an MCA?
First and foremost, you need to take a step back and gain some perspective on what this service can offer. Essentially, an MCA is a type of financing that is offered to business owners who need access to working capital. The service is based around a specific asset: your credit sales. The lender will take a look at your credit transactions and offer you an advance based on how much money your business tends to conduct via credit sales in a given period.
Paying for an MCA
Unlike a loan, a merchant cash advance is categorized as an advance on funds you are already anticipating in some capacity. A lender will figure out how much money your business sees each month via credit transactions, offer you a loan based on this number, then set the terms of your repayment. Traditionally, an MCA repayment is straightforward. The lender will take the funds directly from your future credit sales, making the entire process straightforward.
Considerations of an Advance
Though many perks come along with using an advance for your business, there are also plenty of obstacles of which you should keep aware. Specifically, you need to think about the repayment plan. While it might seem advantageous for the payments to come directly from your credit sales, this is only useful if the sales are strong during this period. Weak or slow sales can cause major problems and put you in a worse financial position than you began.
When it comes to the future of your business, you need to take time to consider the ins and outs of the services offered to you. From a financial perspective, a merchant cash advance could be the best fit. Look over the details and see how you can begin the application process and discover the right solution for the future of your business.
At Speed of Light Funding, we have a great reputation for helping our customers get the business loans they need as quickly as possible. We offer flexible loans that adapt to your company’s circumstances and are easy to qualify for. We’re friendly and knowledgeable, showing you the best commercial finance options for reaching your goals. With the right loan, your business can grow in amazing ways.
