Business Finance FAQ: Cash Flow and Working Capital Solutions

Fast, flexible business finance programs to expedite and improve cash flow, giving business owners access to the working capital needed for sustaining and growing a business.

Business Finance FAQ: What is Invoice Factoring?

Invoice factoring (also known as receivables financing, invoice financing or AR factoring) is a business finance tool that expedites cash flow.

When a company factors an invoice, they sell the invoice to an invoice factoring company like DB Squared. Instead of waiting for their customers to pay, they can factor it and receive an advance on the invoice on the same day it’s generated.

Clients that factor with DB Squared often cite one or more of the following reasons as central to their decision to speed up organizational cash flow by factoring invoices:

  • A desire to take on bigger accounts, fulfill bigger orders or take on new business more quickly
  • Faster cash flow facilitate faster business growth
  • Cash flow is not keeping pace with operational needs
  • Customers had extended terms or took 30 or more days to pay
  • The company was newly established, and so was not yet eligible for other financing programs
  • A desire to negotiate discounts for early payment with their vendors or suppliers

Find out more about receivables financing or use our invoice factoring calculator to see how much working capital you could unlock by factoring – or selling – customer invoices to us. We offer competitive factoring rates as low as 1%, advances up to 98%, and a high level of professional customer service — just what you would expect from one of the best invoice factoring companies.

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Business Finance FAQ: What is a Merchant Cash Advance?

Merchant cash advances provide a lump sum cash infusion to organizations that accept credit and debit cards as a form of customer payment.

A merchant cash advance can be utilized by nearly any type of organization that accepts credit and debit cards as a form of customer payment. Advances are calculated based on the average monthly credit and debit card sales of an organization. They are repaid automatically over the course of 6-18 months by the merchant’s card processing company as a small percentage of each debit and credit card transaction.

Using a merchant cash advance as a working capital financing solution can be ideal for organizations that need to access capital quickly, vs. small business loans which can take weeks to process. Since these working capital advances are based on sales trends, a low credit score or lack of collateral rarely affects approvals.

We source multiple merchant cash advance companies, so we can often provide multiple offers for consideration. Not only does this allow a business owner to choose the financing solution best-suited to their organization, but it may even create competition among funders resulting in more favorable terms or flexible repayment options for the merchant.

Use our merchant cash advance calculator to determine how much working capital your organization might be offered in the form of an advance or apply for a free, no-obligation quote.

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Business Finance FAQ: What is a Business Cash Advance?

Business cash advances provide an organization with a lump sum infusion of working capital.

Business cash advances are available to nearly any type of organization and the advance amount is based on the organization’s average monthly sales. Business cash advances are repaid automatically, usually as a daily ACH debit (and sometimes weekly) over the course of 6-18 months until the amount has been repaid.

Since this type of working capital financing is based on sales trends, it might be an ideal business finance tool for:

  • Organizations with low personal or business credit scores
  • Those who are reluctant to put business collateral at risk
  • Those who need working capital more quickly than bank business loans can be processed
  • Those who do not want the restrictions on use that often go hand in hand with traditional bank financing

We source multiple business cash advance options for our clients, which often means that we can provide more than one business financing proposal for consideration. With multiple working capital solutions to consider, our clients can then choose the financing program that best meets the unique needs of their business.

Use our business cash advance calculator to determine the amount of working capital your organization might be qualified to receive or request a quick quote and get answers in as little as 24 hours, with funding in 3-5 days from approval.

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Business Finance FAQ: What is a Business Line of Credit?

A business line of credit is a fast, flexible business finance tool that makes working capital available on demand. The money is available for use 24×7, deployable when needed:

  • Business line of credit from $2,000 up to $100,000
  • No application or due diligence fees
  • No fees at all unless money is drawn against the line
  • Instant approvals plus manual underwriting
  • No penalty for early repayment and savings if the amount is repaid early
  • Ability to draw daily against the line means no need to draw unneeded funds

Like other working capital financing solutions, a business line of credit is not ultimately dependent upon a credit score or business collateral, so it could be an ideal option as a low credit score business loan alternative. Our business line of credit funding partner shares our values when it comes to customer service and they have an A- Better Business Bureau rating.

Use our business line of credit calculator to see the amount of working capital your organization might be qualified for, or contact us by completing a quick quote form or calling 866-855-3640 to discuss which of our financing solutions might be most appropriate for your organization.

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Explore your options: Contact us to request a quick quote or get more information about any of our working capital solutions.

Business Finance FAQ: What is Business Financing?

Simply stated, business financing is the act of providing money for business activities, startups, expansion, purchases or investments.

Our financing programs can give aspiring and current business owners access to the working capital needed to start new businesses, purchase existing businesses or fuel business activities.

Business Finance FAQ: Debt Financing, Equity Financing and Alternative Financing

There are three basic types of business financing: debt financing, equity financing and alternative financing.

Debt financing (borrowing funds) and equity financing (selling a portion of ownership interests in exchange for capital) are the two traditional types of business financing.

Alternative business financing can take many different forms, including the financing alternatives we offer: invoice factoring, business cash advances, merchant cash advances and business lines of credit. Other types of alternative business financing include new options such as peer-funding, kick start funding, angel investing or crowdfunding.

Ready to find out more about our programs? Start by requesting a free, no-obligation quote and get answers in 24-48 hours – or even faster!