Overview on Existing Business Source of Funding

Business Funding Overview from The Startup Garage
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When traditional types of debt or equity financing aren’t available, businesses can sometimes look within their own operation to find sources of funding.  Typically this type of funding is available for established businesses currently in operation and looking to expand, as opposed to start-up companies looking for funding to get up and running.

A look within the company financials show potential funding opportunities related to accounts receivables, purchase orders, inventory, and monthly income.  Each of these areas within the business offers a potential avenue for securing funds different from the traditional debt and equity models of funding.

Factoring allows a company to sell their outstanding invoices to a third party in order to receive immediate cash. Purchase order financing provides a means of financing for companies that have customer orders but lack the capital required to purchase the necessary supplies to fill the order. Inventory loans allow companies to secure funding based on current inventory or inventory purchases which can be used as collateral.  And finally, Revenue-Based financing, a unique hybrid between debt and equity financing, allows owners to sell a portion of their future revenue stream while retaining full ownership of the company.

Company expansion also often relies on the purchase of new equipment to stay competitive and gain efficiencies.  Companies looking to make these types of expansion purchases may be able to capitalize on equipment financing options.


Whether you have a question about Existing Business Funding, or you’d like to discuss our business plan writing services, feel free to contact us for a free consultation!
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About Tyler Jensen

I work with entrepreneurs who are looking to attract investment and get out of the "Garage". I am passionate about helping entrepreneurs start companies that matter. I helped launch over 100 Companies, Non-Profits and Social Enterprises. I consider myself a serial entrepreneur, startup coach & trusted advisor. * Launching New Companies (For Profit, Non-Profit and Social Enterprise) * Expert Business Plan Writer * Extensive Network of Business Relationships focused on Launch & Rapid Growth of New Companies * Startup, Growth, Marketing, Technology, Web, Business Systems * Trusted Advisor to CEO’s & Entrepreneurs * Capital Raising Strategy Development * Startup Team Development The first company I started and sold is VAVi Sport & Social Club which grew to over 25,000 members in six years, was recognized as San Diego’s 30th fastest growing private company in 2006 by the San Diego Business Journal and 32nd fastest in 2007, and sold for over 25X the capital investment.