Sources of Capital for Small Businesses | Invoice Factoring

As we have covered in prior blog posts, there are multiple sources of funding available for small businesses including loans, invoice factoring, purchase order funding, inventory funding and others.

One source of capital for a small business is Venture Financing. Normally this financing is accomplished through ?angel? investors or a Venture Capital (VC) firm that will provide the initial capital.There are several stages involved with venture financing:

1.) Seed Stage
2.) Start-up Stage
3.) Second Stage
4.) Third Stage
5.) Bridge Stage

The risk of loss to investors decreases as the company progresses through the various stages with the highest risk of loss occurring during the seed stage. The risk decreases as the product matures. Many small companies get there start through venture financing but it is often difficult to quality for this type of financing.

If a small business already exists and is growing, a better alternative may be invoice factoring which provides funding periodically as the company grows and needs cash to support the growth until such time that it can qualify for a more traditional type of financing. A company the provides the service is The Interface Financial Group. A company that has been helping small businesses to grow for over forty years.

Jan J. Cunningham
The Interface Financial Group

Source: http://invoicefactoring.ifgnetwork.com/sources-of-capital-for-small-businesses/

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