Republic Business Credit (RCB) is a lending solution that helps small businesses get access to funds at favourable interest rates without demanding excessive credit hours. As a trusted lender with decades of industry-academic knowledge and experience, Republic offers many different business finance options to help entrepreneurs achieve their business goals. In addition, the credit card is also accepted at a wide range of establishments both in and outside of the United States. However, the interest rates offered through Republic Business Credit are slightly higher than those offered by other sources.
- The majority of business financing comes from receivables. Receivables include cash, check, trade money, bridge loans, advances, mortgages and leases. One way to improve cash flow for a new business is to sell receivables to another buyer. The sale of receivables is referred to as factoring. Factoring is an option used in small business finance that allows the seller to receive financing while holding only the outstanding balance on a receivable.
- In most factoring agreements, sellers are required to pay interest and fees on the amounts they receive while holding the balances. The terms may vary but typically sellers are obligated to repay the interest and fees to the buyer, and only face charges for amounts held after a certain period of time. Because it limits sellers of receivables to only a specified amount, this form of working capital is considered safer than banks. The factoring contract typically stipulates how much of a monthly payment must be made until the full amount of receivables have been repaid.
- In some cases, business owners use Republic Business Credit to finance specific projects. One example is the funding of acquisitions and investments. In the process of purchasing companies that may need additional capital, owners can include purchase loans in their business finance deals. In this way, Republic Business Credit helps business owners obtain cash needed to acquire new equipment and/or clients.
- In order to apply for republic business credit, business owners will have to fill out an application that details their business development plans and needs. The form can also request additional information such as copies of audited financial statements, references from previous lenders, and business plans. Businesses can apply for multiple credit accounts, which can increase their chances of obtaining approved funding. Once approved, business owners will receive a letter of credit usually within one business day.
Business owners can compare business credit from several lenders to find the best available rate. Applicants should take time to carefully compare rates and the terms of each offer. Business owners should make sure that they have enough funds to repay the loan, so that they do not get into debt. This is why it is important to consider the factoring options that are available when applying for business credit in the United States.