Sources of Financing That Your Company Isn’t Utilizing

When it comes to securing business financing, there are more opportunities available than conventional methods such as bank loans or lines of credit. Following are several sources of finance that, either alone or when combined with traditional sources of financing, can provide the capital your business needs.

Leasing Companies

Leasing fixed assets such as computers, vehicles and equipment lowers costs and takes advantage of cash-flow flexibility. By leasing your equipment, you won’t have to make a down payment like you would for a loan, and that frees up your working capital for inventory, payroll or to pay bills. Lease payments are usually lower than loan payments, are tax deductible and easier to qualify for than a loan.

Credit Cards

Borrowing money on a business or personal credit card is a popular and quick source of funds. Although this source has a higher interest rate, if you have good credit you may be able to negotiate a lower rate. Additionally, if you utilize a credit card with a rewards program you may accumulate points much quicker than you otherwise would! Be careful not to default on your payment, though, as the interest rates build up quickly.


Vendor financing is when a supplier lends money to a business so that the business can buy the vendor’s products. Vendors may also be willing to sell to you on credit, with terms as long as 120 days.

Related topic: What Is Leveraged Financing?



For an established business, customers might be willing to pay in advance for products.

Borrowing Against A/R

You can use your accounts receivable as collateral for a short-term loan from a financial institution. Lenders are often willing to loan between 75 percent and 80 percent of the A/R value. If you default on your loan, the financial institution takes over your receivables and collects the debts. Interest rates for this source of funds can be as high as 36 percent or more.


One of the newest sources of financing is through crowdfunding, where many investors pool their money to reach a specific goal.

Merchant Cash Advance

If your business uses credit cards, you can obtain a loan based on future credit card sales. The lender recoups its money by collecting a percentage of daily credit card receipts until the loan is repaid. Interest rates are high but if the need is short term, it might be worth it.

There are many different sources of financing available for your business, and the professionals at Links Financial are experts in all of them. We can help you find and determine which source of funds matches your business and level of risk. Through our extensive network of financial resources, we can secure the capital your business needs to be successful.

What to read next: Financing A Business Purchase Without An SBA Loan

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