What are some forms of alternative financing? -

I own a small janitorial company and I have a chance at a contract with a large company. The problem is that I need financing to help with the weekly payroll and I won��t get paid until 30-45 days after the work is completed. My bank can��t help and I wondered if there is any form of alternative financing for my situation.

There are a few options here that I will list. Factoring (which I will explain further), PO Funding, and Accounts Receivable Financing. When you use factoring, you receive advances against invoices as you issue them. The amount advanced varies from 70% - 95% depending on the industry and the creditworthiness of your customer since they are ultimately paying the invoice. When the invoice is paid, the payment will go directly to the factoring company and they will pay you the remaining balance you are owed less a small transaction fee. Factoring and accounts receivable financing are very viable solutions for a company when bank financing isn��t an option.

Small Business Administration loans

You ll have to get a loan from a bank.