financingI have landed a second small project (10k$ range) with a big account. In each project, our profit is around 4k$, the rest has to be paid to suppliers. In the first project, the account had accepted to pay 50% advance. The second project, we are on our own and need to finance the 6k$. The client will pay after 60 days.
What are the available possibilities ? A part from the obvious (family, relatives, etc) the bank is not willing to finance a credit line. Are there some kind of organizations that will finance a project and take their share at payment?
Many (most) suppliers are willing to give credit accounts with 30 day terms assuming you have good enough credit. Given that the bank is not willing to give a line of credit that might be due to your credit rating. In which case if you have a good assurance level that you will be paid as arranged, you might approach suppliers about giving you a 60 day deal this time and many may be willing to.
Another option is talking to other banks. In somes cases if you have a solid contract with a solid company with good credit banks will deal with you with that as a collateral.
If neither of those options are possible, and you can’t get it from friends/family then it is probably going to hurt; you will probably have to try to find a private lender (probably through a mortgage broker) and private lenders generally charge a fairly exorbitant interest rate.
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