Have you ever found yourself sitting across the desk from your banker attempting to explain your business and all of the reasons why the bank should feel confident handing over their cash to you?
You tell them all about your great business plan, your projected margins, cash flow projections, return on investment (ROI) analysis etc. only to watch as their eyes glaze over and their attention drift as if everybody's time is being wasted.
Well, the fact of the matter is, that it probably is a waste of your time.
Considering the enormously high failure rates of small businesses it should not come as a surprise that banks aren't scrambling to hand out money to just anyone who presents a business plan. But more than likely the reason for your bankers' "far away stare" is because your banker can't relate to what you're talking about.
Your typical banker has never been in business for him or herself and cannot relate to the pressures of needing money to be able to provide a product or service and still having enough leftover to make payroll or pay taxes.
The grim reality is that traditional banks don't care much about your "sure-fire" future growth plans and the cash that you will have coming to you in the future, but instead are concerned with the money that you've got in your account at this moment. And if the bank doesn't like the numbers on your balance sheet, then you're going to walk away disappointed.
It's obvious that there has to be a better way to meet the business community's capital needs...
Well there is – and it’s called the cash flow industry.
The cash flow industry is built on the concept that if a business or individual is owed money then they can opt to collect that money now, rather than overtime or at some predetermined date in the future, by negotiating to receive a reduced amount from a third party.
While the term “cash flow” has become the default name for the industry that many people would recognize from late night infomercial pitch men promising riches from the commissions paid by bird dogging seller financed real estate notes, the reality is that mortgages are just the tip of the iceberg and that a whole market exists for the sale of over 60 different cash flowing assets.
For most businesses, such future payments as accounts receivable, purchase orders, and commercial leases actually represent their greatest source of working capital but unfortunately that cash is usually locked up in the form of outstanding invoices or contracts.
Traditional banks generally consider such future assets illiquid. However, the cash flow industry recognizes tremendous value in these assets and while conventional banks are restricting business credit lines the alternative funding industry has the resources to help fcapitalize your business in ways that the banks will not - by purchasing your future income.
This simple distinction of purchasing cash flowing assets, as opposed to loaning money, has opened up a whole host of funding solutions outside of the traditional finance system and without all of the legal restrictions.
The cash flow industry gives you the ability to operate your business with more financial freedom then you ever thought was possible because capital is advanced to you based upon the creditworthiness of your customers or the entity paying on the contract and not dependent on your own balance sheet or credit history.
Best of all, since it is a purchase of your assets - rather than a loan – it is debt free money that strengthens your balance sheet because it never has to be paid back.
Can you imagine your local banker offering you a deal like that?
