CFO Consulting Services, A Long Island CPA Provider, Discusses Revenue-Based Financing
Bohemia, NY (PRWEB) November 12, 2013 -- Lawrence Teicher, founder of CFO Consulting Services and a prominent Long Island CPA, responds to an article published by Fox Business, which discusses the benefits of revenue-based financing.
According to the Fox Business article titled “5 Benefits of Revenue-Based Financing,” businesses that need an alternative source of funding should turn to revenue-based financing. To obtain a typical bank loan, companies need collateral and a great credit rating. Small businesses that do not have these things often have trouble finding loans, putting the future of the business at risk. Revenue-based financing offers a viable alternative to bank loans for small businesses that need funding.
Revenue-based financing, sometimes called cash flow based lending, is based on the businesses’ cash flow instead of credit ratings and collateral. Basically, the funding you receive is based on your company’s bank deposits and credit card processing activity, not your net worth, credit score or borrowing history. In addition to the minimal credit requirements and required collateral, the article lists short financing terms, a simple application process, and quick funding as benefits of revenue-based financing.
Lawrence Teicher, founder of CFO Consulting Services and leading Long Island CPA, agrees that revenue-based financing can be useful for small businesses with nowhere to turn. “Revenue-based financing is a useful source of funding for small businesses that cannot secure a bank loan, especially business owners that have made financial mistakes that have hurt their credit score,” he says. “The financing system of lending based on revenue is clever. It limits the risk taken by the lender while providing companies with no more money than they ” can reasonably expect to repay in the short term.
While Teicher does believe that revenue-based financing can be beneficial to some companies, he thinks business owners should take caution with financing decisions. “Revenue-based financing usually has higher interest rates, legal restrictions and unusual repayment requirements. I would advise all business owners to consult a CFO or financial expert before making such a decision.”
CFO Consulting Services, LLC provides outsourced, part-time CFO services on an as-needed basis to both small and mid-sized businesses located in the NY metropolitan region. Founded by Long Island CPA and financial expert Lawrence Teicher, CFO Consulting Services follows four main principles: independence, objectivity, competence and confidentiality. These core values have led its clients to achieve lasting success in their businesses.
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Lawrence Teicher, CFO Consulting Services, http://lteichercfo.com, +1 516-521-0246, [email protected]
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