There are many non-bank commercial finance companies that have financing designed to help you grow. They are different than banks, and if you use them you could grow your business larger and faster than you could with traditional bank financing.

The role of a Business Finance Consultant in your business life is to help you choose and use proper non-bank business finance products from the proper finance companies. The result of their work would be that you are able to grow your business larger and faster than you could with bank financing, which means you make more money year after year than you could using bank loans. What's more, you will command more market share as  a result of your increased growth, which is a form of long-term prosperity.

These commercial finance companies are some of America's best kept secrets because so many business owners do not know of them and how to use their business financing products. Yet, the financing that these non-bank financiers provide can be more profitable for many companies than is bank financing. The problem is learning who they are and which of them to use for you specific purpose.

Bank Revolving Line of Credit; How it works:

• Maximally Credit Sensitive
• Dollars borrowed as products shipped or service rendered, and invoices are generated
• Advance 60-65% of eligible receivables, usually out to 60 days old
• May be subject to formula and/or sub formulas
• Subject to Terms and Conditions; rules of the loan including Out-of-Debt Period
• 100% of customers' bill payments are applied to reducing principal
• Outstanding loan balance goes up and down from day to day
• Interest is calculated daily: 1/360th of annual rate on today's balance
• Typically secured by blanket lien on all business assets (GSA), personal guarantee, all personal assets, perhaps additional items
• Monthly reporting, annual audits, requires sophisticated accounting function
• Annual renewal;can order out-of-debt period
• Demand Clause; we're-not-comfortable clause
• Amount of advance is balance sheet debt

Non-Bank Revolving Line; How it works:

• Greater credit flexibility, within reason. Assuming decent credit
• Dollars borrowed as products shipped or service rendered, and invoices are generated
• Advance 85% of eligible receivables, out to 90 days old, perhaps 120
• Less likely to be subject to formula and/or sub formulas
• Subject to fewer, less restrictive Terms and Conditions; rules of the loan
• 100% of customers' bill payments are applied to reducing outstanding principal
• Outstanding loan balance goes up and down from day to day
• Interest calculated daily: 1/360th of annual rate on today's balance
• Security more flexible: Receivables/Inventory, personal guarantee
• Regular reporting, annual audits, sophisticated accounting function
• Annual renewal; usually no out-of-debt-period
• Demand clause; we're-not-comfortable clause; much less likely to use it
• Amount of advance is balance sheet debt
• More dollars from same receivables than bank; greater freedom running company within reason. Also will work with credits that bank will not.