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Financing Options for Small Businesses Facing Foreclosure

This week the Wall Street Journal noted that small companies with commercial mortgages could be facing balloon mortgages this year.  Without working capital, small businesses could be foreclosed upon by their banks in near-record numbers, as more banks have improved their own reserves and are now more willing to foreclose.

business financing for small businesses facing foreclosureWhile for the past few years the residential housing market, its bubble, burst and slow recovery have garnered a large portion of media attention, it should be noted that home owners are not the only ones who lost equity and found themselves underwater.

Commercial property values took the same hit to equity that the residential market did.  And coupled with the Great Recession, business owners were forced to refinance or seek commercial real estate loan extensions en masse.

The WSJ article titled, “Warning: Property Foreclosures Ahead” predicts that more commercial property loans will come due in 2013 than in any prior year.  The first wave of extensions is due, or coming due, and thanks to the slow, largely jobless recovery, many business owners are not yet in a position to make the large balloon payments that will be coming due.  And with many properties underwater (business owners owe more on the property than the price at which it is valued), business owners find themselves at risk of property foreclosure from their banks.

The problem for many of these business owners is not their business model or their potential for success.  The problem is getting access to working capital for business financing when equity is not available.

Without equity upon which to draw as collateral, options for these business owners are limited when it comes to traditional bank loans. If you find yourself in a similar situation and your commercial property is at risk of foreclosure, you still have options available that may help you avoid foreclosure, keep your doors open, give you the means to grow your business and improve its financial footing.

Invoice Factoring Frees Up the Money Your Customers Owe You, Immediately

The monies tied up in your accounts receivable invoices are on the asset side of your financial statements for a reason.  While not yet realized as money in hand, your receivable invoices represent monetary assets owned by your business.

You can get immediate access to some or all of the money owed to you by your customers immediately, without waiting for them to pay their invoices, through the centuries-old business finance option of Invoice Factoring.  When you factor invoices with DB Squared, essentially, you sell us the invoices for immediate payment.  We then wait for payment from your customers.

Merchant Cash Advances Provide Working Capital Today
Based on Future Sales

For businesses that accept debit or credit cards as a form of payment from their customers, merchant cash advances can be the means of infusing a lump sum of working capital into the business immediately.

Either merchant cash advances or invoice factoring could give you immediate access to the working capital you need to make large balloon payments and avoid foreclosure. 

You can continue to grow your business and put your business on more stable financial ground.  Having access to working capital could allow you to:

  • Grow by expanding your business into longer business hours, more lines of products, additional services, more space or even more locations, in order to increase revenues
  • Keep growing and enjoy more stability during seasonal downturns or cyclical lows
  • Give you the financial leverage you need to negotiate better terms with your own creditors or vendors – keeping more money in your pocket!

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DB Squared provides business finance solutions tailored to your business needs.  We want to help you get from where you are today, to where you are tomorrow, and become a valued partner in the success of your business!

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About DB Squared Inc

Welcome to DB Squared! We are a dedicated group of professionals focused on providing working capital and cash flow solutions to businesses through Accounts Receivable Factoring, and Merchant Cash Advance.

3 comments on “Financing Options for Small Businesses Facing Foreclosure

  1. Pingback: Financing Options for Small Businesses Facing F...

  2. Brent
    May 7

    Not only will invoice factoring provide money up front for your invoices that have yet to be paid, but it can also can free up time and provide the capital to take on extra business and grow your client base

  3. Pingback: Financing Options for Small Businesses Facing F...

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