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How often do companies fail? For years, the quick answer to this question in the failure of New Four out of five companies in the first five years of opening. This was very loose and vague support for a claim is not factual statistics. The NFIB estimates that over the life of a small company, 39% are profitable, losing 30% break even and 30% money, identify with 1% of the group "not" category. It is well known that the creation of a new business is a very risky adventureand requires great attention to detail in every area.

A common mistake that new entrepreneurs make is the lack of planning for cash flow solutions. Owners retain the idea of emergency or growth capital as a problem by simply talking to their banker, or perhaps finding a private investor can be solved. When the time comes, they will quickly discover that they have a lot of valuable time and effort wastes on a lost cause. The fact is that most small businesses require a cash infusion of somePoint. Between 5% and 10% of entrepreneurs looking for money for their transactions at any given time. 92% of these entrepreneurs refused loans from traditional lending sources.

Why? The typical reasons are: Not enough time in the economy, the owner is not willing or no collateral, personal guarantees or use less than prefect credit. Many small business owners feel that this is their only resource for acquiring the necessary resources to complete their project so they will put theirPlans to retire. Little they knew that the "Starbucks does not stop at the bank." Enter the world of alternative financing.

Most owners do not realize that in most cases, their businesses more money than in the books of the bank. The cash can be in the form of assets such as equipment, real estate, and even demands. I want more than one, that you have not seen on the outside to speak; factoring future credit card receipts. On the basis of U.S. Census Bureau(2003), the second largest industry in our country is RETAIL, a market of nearly 4 trillion U.S. dollars. Single store retailers account for 95% of the retail market. These companies accept Visa and MasterCard as a form of payment for their goods or services. If they do not, they should.

Your past their future credit card receipts, they can credit card receipts left in an asset that can be sold for money. May sound confusing, but it is actually a simple concept. A company that has shown at least 4,Month of spice in the processing of credit cards to their past average volume as a predictor of their future volumes and to sell part of the volume, that the future use, at a discount in exchange for cash. This type of financing is attractive to the savvy entrepreneur for the following reasons. 1) The money in the short term (usually 7-10 months), so that the dealer is not locked into a payment plan for 3-5 years. 2) The payback is automated, so there are no checks to write rate. 3) The payback periodis tailored to the dealer's cash flow, which means that the funding is only paid when the merchant is paid. 4) The dealer does not need all of his business or personal assets to use.

I have to be taken, however, this is usually an expensive way to raise working capital and should never be used for anything other than an investment in your company. Dealers who do not look for the institutional funding of this as a viable option when the benefitsare listed above. If the ease of acquisition and the speed and convenience, and the payback periods where you can enjoy faster return on investment, it is no wonder why this form of alternative financing has become a very popular way to finance the growth of your business is. Just another tool in the financial belt by business leaders today.

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