working-capital
4 posts tagged "working-capital".
Borrowing against value the business already holds: unpaid invoices, inventory, or next month's sales. It is faster to obtain than a term loan and almost always more expensive, and the pricing is usually expressed as something other than a rate.
- Financing
Asset-based lending rates: what an ABL line costs
Asset-based lending prices at prime plus 1% to 5%, plus fees an APR quote hides. How the borrowing base works, the all-in cost, and when an ABL line fits.
- Financing
Invoice factoring cost: the fee is not the rate
Invoice factoring runs 1% to 5% per invoice, but that fee is not an interest rate. Convert it to an APR and a typical deal lands near 24%. Here is the real math.
- Financing
Merchant cash advance APR: what 1.4 really costs
A merchant cash advance quotes a factor rate, not an APR. A 1.4 factor over six months is about a 142% annual rate. Here is the math, and the way out.
- Financing
Revenue-based financing: how it works and costs
Revenue-based financing repays a share of monthly sales up to a capped multiple. Gentler than a cash advance, but the effective APR still lands at 20% to 60%.