California Business Loans

Where do small businesses find business loans in California ?

With so many various businesses springing up in California everyday, your business needs enough capital to stay ahead of the game. But where do businesses find the best financial help? When companies go looking for business loans to provide funds, they quickly find that many financial institutions are very hesitant to approve a loan for a small business. So, where do businesses in California get instant capital?

Among the key findings:
Over eighty percent of the businesses in California surveyed used some kind of credit and had outstanding debt on their books at the end of 1998. Fifty-five percent of businesses loans were some kind of traditional loan, while seventy-one percent obtained credit from non-traditional sources, mainly business owners’ loans and credit cards.

• 46% of California business loanswere personal credit cards, thirty-four percent used business credit cards, and twenty-eight percent used lines of credit as opposed to business loan.
   
• While the majority of small businesses in California used some form of loans, most small businesses reliance on credit in business operations is limited in scope: forty seven percent of firms had no outstanding debt, and another twenty-five percent had just one loan outstanding.
   
• The percentage of California businesses using credit normally increases with firm size. The percentage of firms using any credit increased from 70% percent to 99.6% as the employment size of the firms increased from zero to over one hundred. This rising trend is most evident in businesses uses of credit from loans supplied by depository institutions (banks, thrifts, etc.). For example, only twenty-two percent of firms with no employees used credit from depository institutions, while seventy-eight percent of firms with over a hundred employees used depository institutions.
   
• The use of business owners’ loans and personal credit cards leveled off or diminished as firm size increased.
  

To conclude, two distinct patterns between business size and the type of credit used were observed. The positive relationship between business size and the percentage of credit from depository institutions seems to reflect the availability of credit to larger small firms—credit becomes more available as business size increases. A flat or inverse relationship between business size and the use of owners’ loans and personal credit cards reflects a different phenomenon. Businesses tend to use these alternative sources because other sources of financing, which are usually cheaper, may be unavailable.

What are the benefits of our invoice factoring program?

Invoice factoring is when a business wants to free up capital that is tied in outstanding customer invoices. Since not all customers pay their balance on time, debt can start to accumulate rather quickly; especially if you are not making any sales or bringing in enough revenue to sustain that debt. Invoice factoring is when a company actually sells their customer invoices to an accounts receivable factoring company for instant capital. Doing this frees up a great deal of resources for a small company to continue running its business. Consequently, your business is debt free.

Now, the second company is in charge of contacting your customers for collections. It is no longer your responsibility to make awkward collection calls or send letter after letter to remind your customers that they need to make payments. Your business can focus on more important business matters at hand.

What are the benefits of our invoice factoring program?

• Builds your business credit
• No financials required
• Fast Financial Funding
• Approvals in as little as twenty-four hours
• No up-front fees or closing costs
• Easy Money
• No more collection calls
• Debt free

Don’t let your debt build up in customer invoices. Contact accounts receivable factoring and sell your invoices for instant capital to keep your California business open and running smoothly!