Financing Options

Financing options are alternatives to actual cash payment. Financing options include credit cards, third party loans, and factoring. Remember though, any time you use a third party, they want a piece of the pie in the form of interest.

Don’t Flip Them, Finance The Flip!

Flipping Houses

The rage in real estate for the last 17 years has been flipping houses.  Simple principle of buy low, fix it up and sell high – House Flipping Business Dynamics.  What if I told you there was more money to be made with less risk and very little work if you simply finance the deal?  You would say I’m crazy.  Well, I’m going to show mathematically that I know what I’m talking about. 

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Convertible Debt

Convertible Debt

In poker, deuces are often called the wild card.  You can use the card as a ‘Two’ or as any other card in the deck.  In effect, you can convert the card to something else.  Well, convertible debt uses the same principle in business.  The holder of the convertible instrument has a choice, continue to collect interest as a debt instrument or convert the debt to equity. 

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Long Term Debt – Explanation and General Understanding

Long-Term Debt

In the arsenal of capitalizing a business operation, long term debt serves as one of the primary sources of capital.  If you are an owner of a small business, you need to understand the relationship this source has to the overall financial status of the company.  Too much debt and the owner is burden by the cash outlays to service.

Lease or Buy

Lease or Buy

Fixed assets are normal in business operations.  However, financing those assets is the critical issue.  If you buy the asset outright, you tie up capital that can be used to expand operations or keep overall costs low in operating the company.  You can buy the asset paying a down payment and borrowing funds from a lending institution and make payments over time.  This is still a form of purchasing the asset.  However, there is another option, leasing.

The Different Types of Bank Loans

Types of Bank Loans

There are many different types of bank loans, each having their own respective purpose.  All bank loans are categorized into two distinct groupings; secured and unsecured loans.  Within in each category of loans there are several different sub-types of bank notes used to make a loan.  Both categories require the owner of the small business to provide a personal guarantee to ensure the loan is paid back. 

This article is restricted to members only. This site has over 470 articles to help guide small business entrepreneurs. The site is designed to answer normal business questions and assist in solving problems. Subscribe for only 99 cents and get a one week all access pass to all the articles. Click on the register button above in the menu bar. ACT ON KNOWLEDGE!

This content is for Bronze, Silver, One-Time and Contractor's Diagnostic members only.
Log In Register

Cash Counts

Cash Counts

Just like employees, cash has its problems too. Sometimes it calls in sick. Other times, it shows up late (actually quite often), and for some reason cash isn’t as productive, it doesn’t do as much work as you would like it to do.

Follow by Email
Facebook
Google+
https://businessecon.org/tag/financing-options">
Twitter
LinkedIn