Your Cash Flow Connection: Where Do You Go When The Bank Says No? by DL Benton is an excellent book on the alternatives to commercial bank financing. These alternatives have been referred to as non-traditional small business funding tools.
Benton has referred to the alternative business funding as leveraging liquid paper assets. One popular method, accounts receivables financing, is based upon the soundness of the accounts receivables of the seller. Contract or purchase order funding is legally binding for the purchase of goods at an agreed upon price and date. Business daily Credit Card Advanced Funding depends upon the soundness and predictability of the monthly debt and credit card sales.
Benton covers the more complicated business funding mechanisms. For instance, construction funding programs are for bonded and non-bonded contractors. Import and export funding is based upon the market demand and orders from customers.
The author provides many reasons for the growing popularity of the non-traditional funding mechanisms. Reasons include a highly leveraged global economy, investors want a good return on their alternative income streams and more consumers are knowledgeable about alternative income streams.
Benton explains that cash flow income streams can be sold in a secondary market. This market includes accounts receivables, construction receivables, purchase order financing, commercial contracts, letters of credit, bankruptcy receivables, medical receivables, international receivables and sports contracts.
The remainder of the book discusses collateral based cash flow income streams, contingency based income streams, insurance based streams and factoring. Your Cash Flow Connection is a valuable business financing resource for a plethora of small business uses where the services of non-traditional financing sources are needed.Powered by Sidelines