BEST PRACTICES
BEST PRACTICES/BUSINESS FUNDING
WHICH FUNDING SOURCE IS RIGHT FOR YOUR
BUSINESS, WITH SO MANY TO CHOOSE FROM?
There are many sources who offer business funding today.
Knowing these can help you find the best funding options for
your business.
Business Charge and Credit Cards are a fast and easy way to
access cash for business. You can use the money for any purpose.
Many merchants will approve you for individual credit cards of
$10,000 or higher.
Angel investors fund over 30,000 small businesses every year.
With over 250,000 active angels in the country, you may want to
consider an angel investor network to simplify your search. These
investors are a great source of funding when banks won’t approve
you. They are perfect for projects where you need a lot of money.
Asset Based Funding is perfect if your company has collateral
like accounts receivable, inventory, equipment, purchase orders,
or real estate. You can use these assets to get the money you
need. You can secure asset-based funding, even if your credit isn’t
very good.
Bank Loans are still available, although they have become
harder to get approval for. Many large banks tend to be much
more conservative in lending. You may want to consider a
community bank or credit union for an SBA loan.
Equipment Leasing helps when you want to lease expensive
equipment. Sometimes, you can borrow against existing equipment
For over 25 years, Brian Hartman has been
a highly sought-after Commercial Lender
in the banking industry. He specialized
in measurable make sense lending and
in building strong banking relationships,
helping local individuals and companies
achieve the results they desired, in order to
meet their short and long-term goals.
Hartman helped change the lives of
many business owners over the years, by
partnering with them as their Commercial
Lender. He was like a bank doctor that
learned about the business’ symptoms,
analyzed them, diagnosed them and filled
BRIAN HARTMAN
their prescriptions, in order to bring them
back to better business health. He did this via commercial mortgages,
lines of credit, equipment loans and more.
Connecting the right people is what makes a difference in this world
and Brian connects the dots as often as possible, through networking
events and being on the Boards of many non-profit organizations to
help them grow and prosper. Most importantly, he has realized that to
achieve what matters most in life, you must be willing to give before
you can receive.
Hartman is the President of Pharus Funding Partners, LLC (PFP), and
Managing Partner of the Pharus Global ecosystem of companies.
PFP helps clients and prospects with financing needs for business
acquisitions, expansions, commercial properties, multi-family housing,
construction projects, equipment, both short and long-term working
capital and more. The company has expanded to also offer Personal
Credit Repair and Business Credit Building services.
TCBusiness.com 25
you already own.
Factoring is perfect if you have high amounts of account
receivables. You can get funding up to $25 million and you can
receive your advance within 24 – 48 hours in most cases. With
factoring, you sell your company’s accounts receivables to a
company (known as a factor) at a discount. This is to free up your
cash. The company that purchases the receivables then assumes
the responsibility for collecting them. This is a great option as
they don’t care about your own personal credit.
Grants are a great way to get money for your business, in
particular government grants. Depending on your business type
and intended use of funds, there are many options available.
And you don’t need to pay grant money back. Search for federal
grants at www.grants.gov and www.grantwatch.com and make
sure to also check state and city websites as they may have other
options for grants.
Lines of Credit are perfect sources of working capital. They act
like a revolving credit card, but they have much lower interest
rates and higher available credit limits. You can get credit lines
over $150,000. You can write checks from the account or use a
debit card to withdraw funds or use for purchases.
Merchant Cash Advances and Merchant Lines of Credit work
for businesses that process credit card payments. This type of
financing will advance you money against future credit card transactions.
You can even get a debit card to use the funds you get.
Microfinance Loans are easier but are time-intensive to
qualify for. They have loan amounts ranging from $500 to $35K.
Many businesses use several micro loans to get money for their
business. This is versus applying for one larger loan due to easier
qualifying criteria.
SBA-backed loans are still one of the most popular financing
options available today. SBA backs or insures about 75% of the
loan, while the lender lending the money takes on about 25%
or so of the risk. Due to the lower risk to the bank, many major
banks are more apt to lend money using SBA backed loans than
regular loans.
Venture capital is neither easy nor fast to tap into but can be
a viable source of funding. This is a great source when you need
higher loan amounts and don’t mind giving up a potential stake
in your company. Plus, you don’t have some of the headaches
that come with conventional funding.
It’s always easiest to get financing when you know what you
are looking for. Now you know some of the many financing
options available to small business owners today. At Pharus
Funding Partners, we are more than happy to assist you, in
order to find the right funding options to match your scenario
at the time.
FOR FURTHER INFORMATION ON PHARUS GLOBAL AND THE
RESOURCES AVAILABLE TO HELP GROW YOUR BUSINESS
STRONG, VISIT WWW.PHARUSGLOBAL.COM.
SPONSORED CONTENT
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