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Which Consumer Financing Option Should Your Business Offer?

Ginger Hale / March 6, 2024

Leasing thereby allows you to direct cash toward other business expenses and investments. An improved cash position can also help your ongoing ability to obtain additional debt. However, you should be aware that leasing from conventional lenders may be difficult for startup businesses because traditional lenders require an operating history from prospective lessees. Searching Google or your local telephone book may reveal factoring “brokers” that can assist you in locating suitable factor companies. Commercial finance companies, certain banks, and a variety of different types of financial companies will purchase your receivables. Also disclose any prepayment penalties or stipulations in your … Read more

Which Consumer Financing Option Should Your Business Offer?

New lending to SMEs has been little changed since the onset of the pandemic . This is despite interest rates declining to historically low levels in response to the package of measures introduced by the Reserve Bank, and the pick-up in economic activity in the second half of 2020. Lending to large businesses increased sharply in the early stages of the pandemic, as large businesses drew down lines of credit, but these funds were repaid over the rest of 2020. The compulsory Payment Times Reporting Scheme, operational since January 2021, requires larger corporations to publically report how quickly they pay … Read more