4 Signs It’s Time to Use an Inventory Financing Loan to Grow Your Business

Committing to the decision to take out an Inventory Financing Loan from Fast and Easy Funds can be a difficult and stressful decision. No matter what kind of deal, APR, or lender that you choose to borrow from you will always have the outstanding debt that you are responsible for paying back weighing on your mind until you repay it. Unnecessary Inventory financing loans can add anxiety to your life, you will need to factor interest rates into your budget as well. The other thing to keep in mind is that when you small business need an inventory financing loan and you do not get one out of fear the results could be disastrous.

There is a lot of information circulating inventory financing loan options, but not a whole lot of advice. It may be difficult to determine when your business needs an inventory financing loan. Fast and Easy Funds, an independent supplier of inventory financing loans, wants to help you read the signs for when it is the right time for you to take out an inventory financing loan for your business.

1. Increased working capital.

You are having issues with equipment of inventory, and you are not a seasonal business and you are feeling strapped for cash flow. Working capital is cash consumption for your businesses day-to-day operations that doesn’t necessarily translate to profits or losses.  If your business experiences a soft month or have a credit customer who is slow to pay you may want to consider taking out an inventory financing loan.

2. Emergencies.

This is the most obvious sign of when you should take out an inventory financing loan. When something goes horribly and unpredictably wrong and you need to fix it fast. If something happens and you initial reaction is “How am I going to pay for this?” an inventory financing loan may be the best option for you. Fast and Easy Funds approves you fastly and offers working capital that same day.

3. Need to build business credit.

Building up business credit can be a long and excruciatingly slow process. No personal owner wants to use their own credit score to secure business credit so what do you do until your business has reported payment history to the credit bureaus? You will need to start building business credit history. One of the best ways to accomplish this is to take out an inventory financing loan to build business credit.

4. Expand your business.

If you have plans to grow your business by opening new locations, start a large marketing campaign, increase your inventory, hire new employees and you’re feeling financially secure but want to take it to the next level then you should be looking into an inventory financing loan to grow your business. Taking out a loan to improve or diversify your operations is always a great idea as long as the funds you receive from your new growth outweigh the payments owed on your inventory financing loan, then you’re in the clear.

How to Raise Your Credit Score fastly

Fast and Easy Funds is an independent lender for small businesses and is aware that many people may not be as proud of their credit score as they would like to be. A survey from the National Foundation for Credit Counsel indicated that people would be more embarrassed to reveal their credit score than their weight. The good news is that it is possible to change your credit score fairly fastly, but keep in mind that “fastly” is a relative term. Any improvement can take 30 to 60 days to be reflected in your credit score. If you don’t act though, nothing will happen in regards to your credit score changing.

Fast and Easy Funds explains how the first step to taking action is to get a complete copy of your credit report. The three major credit reporting bureaus have to give you one free copy annually, so plan to order one every four months. Once you receive your credit report, use one or more of Fast and Easy Funds’ tips below to fastly raise your credit score, which has very influential power the financial actions that occur during your everyday life.

  1. Dispute any errors.

Mistakes happen to everyone. Fortunately, when it comes to your credit score you can dispute errors online through one of the major credit reporters. Once you have cleared up any errors, follow the next steps to see if there are any additional steps that you can take to improve your credit score.

This is life and things often come up that may make it difficult to make a payment to your credit card. You can ask creditors to “erase” the debt or any account that went to a collection agency. You can write a letter offering to pay the remaining balance, and in return ask the creditor to report the account as “paid as agreed” or even remove the mark altogether.

You can also ask for a “good will adjustment”. If you are a loyal customer with pretty good standing with one of your creditors, you can ask that the “missed payment” remark be removed from your credit report.

  1. Check your credit limits.

Fast and Easy Funds suggests that you make sure that your reported credit limits are accurate and not lower than they actually are. If your newly raised credit limit hasn’t been reported yet, request that this be done.

  1. Apply for a credit card.

Having a line of credit through a credit card provider can do great things for your credit score. You must be a responsible user of this credit though.

  1. Raise your credit limit.

Ask your creditors to increase your limit. You have to be careful though and responsible enough not to use the additional credit and increase your spending; otherwise, you could find yourself back in the same situation.

  1. Under use your credit available.

Do not whip out the plastic every opportunity. Credit utilization should never exceed 30% and ideally should be even less than that.

  1. Don’t close any lines of credit.

Canceling a credit card will cause your available credit to drop, which does not look good to the bureau. Pay your cards off, but keep them active.

  1. Pay your bills on time.

Payment history makes up a whopping 35% of your FICO score. Automate your payments if you are forgetful. You can even make double payments every month if you have the extra funds.

Indications It’s Time to Expand your Business Using Asset Based Lending

When business is going well it is natural to start thinking about expanding, but it is also natural that you may be feeling skeptical. There are many factors that go into growing a business and financing is arguably the most important. A great way to get extra finances to grow your company is through asset based lending.  Asset based lending is a loan secured by inventory as collateral, which is perfect for high growth companies. Asset based loans will continue to grow as your company’s receivables and inventory grows.

Before you make a commitment to expanding your business you should make sure that your company is truly ready to expand. Here is a list of indications that it is time to expand your business using asset based lending from Fast and Easy Funds.

  1. Your business has been profitable consistently for a few years.

 

  1. The industry or market of your business is growing.

 

  1. You have steady positive cash flow.

 

  1. Your company seems to be running out of room.

 

  1. You have more business that your company can manage.

 

  1. You have returning customers that are loyal.

 

  1. You have strong team of employees that can handle extra work that comes with growth.

 

  1. You can see that your product or service is in demand.

 

3 Things You Should Know About Accounts Receivable Loans

Account receivable financing is essentially asset based lending. It is an ideal form of lending for companies that don’t have inventory. A receivable-based line of credit is ideal for maximizing cash flow and increases revenue. Accounts receivable financing is a good alternative to a traditional business loan. Many businesses turn to this form of lending to have access to reliable cash flow and keep business up and running while on schedule. Many businesses suffer from cash flow constraints due to a variety of reasons, and can use an accounts receivable loan to pay their employees, pay off debts, purchase inventory or equipment, or to increase their overall sales. Here are 3 things that Fast and Easy Funds believes you should know about accounts receivable loans and how it can help your business flourish.

  1. Accounts receivable financing is not a loan. This form of financing does not put your business in debt or require you to sell you receivables to a third party. Accounts receivable from Fast and Easy Funds gives you immediate funds and is far less expensive than factoring.

 

  1. Fast results. When you apply for accounts receivable financing, the process only takes a fraction of the time that a traditional bank loan would take. Once the application is approved your business should receive funds almost immediately.

 

  1. You will stay in complete control. With accounts receivable you maintain invoicing and collection calls. The accounts receivable line of credit is not a factoring line that requires you to sell receivables to a third party.

How Paying off Your Easy Term Loan Affects your Credit

Knowing that credit scores play a huge part in your financial future, Fast and Easy Funds knows that it is no wonder people are constantly searching for ways to maximize their business credit scores. One common strategy many people use to build their business’ credit score is to pay off credit debt, which can give their business credit score a fast boost; especially, if the business was carrying a large balance. It would seem obvious to apply the same ideology to other forms of debts like an easy term loan, but you should be aware that you are making yourself less credit-worthy if you close your lending account. Fast and Easy Funds explains the fine print to gaining credit through installment loans like easy term loans.

  • Type of credit and length of credit history.

Credit scores are valued based upon numerous different factors involving credit lines. Your credit score is a healthy composite of credit cards accounts, car loans, mortgages, student loans, etc. This shows that you are able to maintain different types of credit, which is good in regards to your credit score.

The FICO score will take into consideration your open and closed lines of credit. If an easy term loan is in good standing and paid as agreed, it can be reflected on your credit score for up to 10 years.

  • Paying off an easy term loan early.

Keep in mind that credit scoring models prefer open and active accounts with a solid history of on-time payments. Paying off your easy term loan early will not hurt your credit score, but leaving it open and managing payments will show that you have account responsibility over a period of time.

  • The bottom line.

Paying off your easy term loan and eliminating your debt is good for your financial well-being since you cannot predict a financial future. If you are solely paying off your easy term loan to boost your business credit, then don’t. Making your installed payments on time over the course of the loan will be more beneficial to your credit score.

Easy Term Loans Explained

An easy term loan from Fast and Easy Funds is the most common form of small business loan out there. It is pretty easy to understand the terms and conditions of an easy term loan. The most basic explanation of an easy term loan is when you borrow a fixed amount of money (usually for a specific purchase) and then you have to pay the loan back over a fixed amount of time, at a fixed interest rate. Fast and Easy Funds is an independent loan company that offers easy term loans for businesses. We want to help you fully understand an easy term loan so that you are knowledgeable when it comes time to commit to an easy term loan.

How do easy term loans work?

An easy term loan is what most people think of when they think of small business lending options. Easy term loans are loans with a set repayment time, a set number of payments, with a fixed or variable interest rate. Easy term loans are available for small businesses depending on the business’ needs, credit score, cash flow, and a few other factors.

Your small business can use an easy term loan for virtually any business need, including specific purchases like equipment or inventory, working capital, paying back other debts, meeting tax obligations, among many other small business needs.

What is the total cost of an easy term loan?

The structure of an easy term loan predicts your monthly payments and you will know exactly when the loan should be paid back by. To determine your personal payments and total payback amount, you will need to first figure out the interest rate that Fast and Easy Funds offers.

How can I qualify for an easy term loan?

Most businesses qualify for a Fast and Easy Funds easy term loan, but the factors of the loan will vary. The interest rate, length of the loan term, and maximum loan size will depend upon your business’ revenue and credit rating.

The Pros and Cons of a Fast and Easy Cash Advance vs. Bank Loan

If you are a business owner you can use a Fast and Easy cash advance to cover unforeseen costs or additional money so that your business can continue to grow. A cash advance from Fast and Easy can provide ongoing working capital for your business and for future needs. Cash advances provide the funding you need to achieve business goals, but what is the difference between a Fast and Easy cash advance and a loan from a bank? How do you know which is right for your business?

Fast and Easy Funds knows that there are many pros and cons to cash advances and bank loans. The best option is dependent on your business, industry, and financial history. Fast and Easy wants to help you find the best funding option for your business, so here are the pros and cons of a cash advance versus a bank loan.

  • Speed and Qualifications.
    • Bank Loans- lenders will ask for extensive documentation and qualifications, the review process can take weeks or months, and a bank loan can be denied if credit history is less than perfect.
    • Fast and Easy Cash Advance- you will be asked to provide bank statements and account history. Many companies qualify and receive cash within two weeks.
  • Interest Rates and Repayment Terms.
    • Bank Loans- Typically have set monthly payments. They are harder to secure but can be more affordable in the long term, depending on interest rates and payment plans.
    • Cash Advance– Fast and Easy provides multiple offer and you can choose the plan that is best for your business.
  • Financing Availability.

After the financial crisis in 2008, even credit-worthy borrowers were unable to secure traditional financing since banks were simply not lending. Fast and Easy Funds provided funding options for businesses since they are a private lender.

Telltale Signs it’s Time to Consider a Business Term Loan

As a small business owner, it can be very stressful when you consider your business’s future growth. There are many aspects that you go over and over in your mind, such as marketing strategies, hiring, technology, inventory, etc. etc. The biggest question you may be asking yourself is if you did the right thing by starting your business. No matter how prepared any business owner is, you can never predict when you need an emergency source for funding.

Even though taking out an easy business term loan from Fast and Easy Funds means relatively fast approval, the process can still take two weeks. Fast and Easy Funds wants you to be as prepared as possible when it comes time to apply for a loan, here are some telltale signs that it is time to apply for a Fast and Easy term loan.

  • Your company needs more inventory. Small businesses always need to have enough inventory to fill orders. Easy term loans can be the financial boost your business needs to stock up on inventory.
  • The company needs more equipment. Using a term loan to buy equipment for your business can allow you to purchase the equipment necessary to conduct business and sometimes be written off in your taxes.
  • You need to hire more employees. You will need a Fast and Easy, easy term loan to have the capital necessary to sustain growth and support new salaries.
  • You’re running out of space. As sales increase, so will your need for space. The smart thing to do is evaluate current and projected sales so you can determine when you need more space, don’t wait until your business is “bursting at the seams”.

Deciding if Inventory Financing is Right for your Business

Financing is one of the toughest aspects to owning a small business. Many small businesses get their financing from investors, bank loans, and/or credit cards, these can actually negatively impact your credit score. If your company has a longer sales cycle, your business may encounter cash flow problems that will make it difficult to make monthly payments with these types of loans.

One option that may work for your business and revenue model is Fast and Easy Funds’ inventory financing. Inventory financing allows you to use your business’ biggest investment, your inventory, as leverage as collateral against a loan. Businesses choose to use inventory financing during periods of the year when they need to increase inventory, since it gives them extra money and inventory to meet demands.

Fast and Easy Funds knows that with any business decision that involves money, you need to carefully weigh the pros and cons of inventory financing.

Pros:

  • It doesn’t count on your credit
  • Decisions for inventory financing are made fastly
  • Inventory financing has low barriers for entry; it is a fairly low-risk proposition for the borrower
  • Fast and Easy offers inventory financing on in transit inventory

Cons:

  • Many lending agencies consider inventory financing to be a high-risk investment
  • You have to keep in contact with your lender regularly
  • Floating interest rates can be variable and cause borrowers to pay more in fees which does not get applied to the loan’s balance

Finding funding for your business can be a challenge, but Fast and Easy Funds has a variety of funding options. If you need help getting funds for your business visit Fast and Easy online today and get cash fast!

3 Myths about Business Cash Advances

Fast and Easy Funds’ cash advance provides additional money to your business so that it can continue to expand. Fast and Easy cash advances have many great aspects, one of which is that once the cash advance has been paid down to half of its original loan amount, then you can repeatedly renew the loan, just like a line of credit. This can provide your business with ongoing working capital for your business and its future needs. Small and medium sized businesses can stand to benefit a great deal from a Fast and Easy cash advance. There are many rumors that float around this type of cash advance financing option, the first step to utilizing this powerful business tool is to understand what it is- and what it isn’t.

Fast and Easy hopes to dispel 3 myths that are associated with business cash advances:

  1. Cash advances have high interest rates. Cash advance is a term that scares people suggesting that it is just a fast loan with high interest rates. Fast and Easy will send you multiple offers when you apply for a cash advance, of which you can choose is the best option for your business.
  2. You must have good credit to qualify. Fast and Easy Funds accept credit scores between 550 and 800. Fast and Easy cash advances consider your business’s performance rather than the business owner’s personal credit score.
  3. Cash advances are only for small amounts of money. Fast and Easy approves $50,000-$2,000,000, and once you pay down to half of the original loan amount, you can repeatedly renew your loan, like a line of credit.