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When guests visits one’s living room, they will find that the home owner’s entertainment system defines the entire room’s multimedia arena. Indeed, one’s home entertainment system serves as the central entertainment hub of one’s home. One’s home entertainment area contains everything that is needed for entertainment, such as the television, the speakers and gaming systems. These components usually take up a lot of set up time. This factor can be especially true if the components were purchased separately.Bose has built a huge reputation with regards to providing consumers great audio and home entertainment products. The Bose company is further adding to their reputation with the Bose v25/Lifestyle V25home entertainment system.The Bose v25 ComponentsThe Bose v25/Lifestyle V25 isn’t an inexpensive purchase. However, the price is worth it, because the system is a high quality entertainment system for the serious home entertainment consumer who doesn’t mind spending money on this type of a home entertainment system.The Bose v25 system consists of four speakers that are comprised of direct/reflecting technology. This increases the overall speaker sound in a manner described as dramatic. This creates a sound of natural balance. This system is equipped with a horizontal center channel speaker. This speaker helps to round out this system’s surround sound experience. The Acoustimass module produces low frequencies without any audible distortions.The setup of the speakers depends upon the layout and the size of the room that these would be placed in. The ADPAT1Q helps with the system’s audio calibration in this instance. This works to determine the room’s dimensions,and then make the necessary sound adjustments to the speakers as needed.The Bose v25 features its main operations in the control console. The system comes equipped with a remote control that has an LED display, so that the user can take advantage of all of its features.Bose v25 Technologies And FeaturesOnce the owner sets up their components in the manner that they desire, the intelligent integration system can do most of its work,with regards to operating the system. The system has four HDMI connections and also two audio connections. This way, the owner can connect the system to components such as a Blu-ray player or a HDTV, or even to gaming consoles.The intelligent integration system operates as an onscreen interface. The user will be guided through the steps that are needed for hooking up their connection. The system will also let the user know that they hooked up their connection in the correct manner.This system will allow for DVD player user to use its automatic video up-scaling features. Special algorithms in the system also work to upgrade HDTV video resolution as well.ExtrasThe Bose v25 offers everything that a consumer would desire for their home entertainment needs. The system also includes FM and AM antennas, for those who desire to listen to radio stations with easy and with clarity. The user can also hook up their iPod to the system in order to listen to their favorite tracks with the best sound quality possible. Not only this, but this system comes with a LED screen remote control. This system can be controlled by using one’s Apple mobile device of choice.Consumers might hesitate at paying $2500 for this home entertainment system. However, when they purchase a superior home entertain system such as this they’ll come to learn that their investment was worth every cent. They will immediately notice, hear and see the difference.

Marketing your business online is one good option to get more customers and eventually make more profit. The wide reach of the internet, in fact, the global reach of the internet has made it a great avenue to advertise your business and expand it later.Even if you do have a small business, your online presence can be a big step towards expanding your business. In fact, you can even focus on maintaining an online business as you can cater to a lot of customers worldwide. If you are a small business owner, here are a few things that you might find useful in marketing your business online.- Create a rich-content, professional looking websiteYour website is your online store and you have to make it appealing to customer at the same time informative. One thing that can help you make your business grow online is to provide your online readers with the information that they need to learn before purchasing the product. This may depend on the type of business that you want to promote online, but generally, online readers often want to know more before placing their orders, so make sure you take care of that as well.When it comes to designing on the other hand, you have to also make sure that you show professionalism to your clients. This is one way that they can trust you as well. In the online world where trust is a big issue, especially when it comes to transactions involving money, it is indeed important to be able to get the customers trust and their willingness to spend their money on your business.- Take advantage of the free internet marketing toolsIf you can’t advertise your business on print and television without shedding a lot of cash, you can actually find cost-effective ways in marketing your business online. In fact, you can find free internet marketing tools to help you promote your products and services.Participate in forums, write articles and join social networking sites for businesses. Indeed, there are a lot of ways you can promote your business on the internet and bring interested people to your website.- Advertise.Advertising online does not cost you as much as advertising on TV, on print, or in billboards. Even if you do have a small business that caters only to a limited number of people and to a specific region, you can however opt to customize your advertising to make your marketing more localized.Unlike the conventional forms of advertising, you can also promote your business given the budget you have for advertising and based on what you can afford. Among the advertising methods you can opt for are the Google AdWords, banner advertising as well as article marketing. You can also explore the great benefits of pay per click as well as affiliate marketing, which are among the popular and good ways to promote your business online.

Sometimes we need extra money to finance a special project, like a trip, an anniversary gift or just to go shopping. Other times the need of extra money comes from an emergency like a broken car or an almost due bill that must be paid. Whatever the situation is, a personal loan can be a good and fast solution.What Kinds Of Personal Loans Are Offered?We can start by separating personal loans into two categories: long term loans and short term loans. Within long term loans, you have secured and unsecured loans. Repayment terms vary according to the requested amount, you can have one or two months terms or up to ten years. It may vary, and will also depend on the chosen loan and the lender’s conditions. Short term loans, in the other hand, are meant to solve urgent needs, these loans’ repayment terms are no longer than a few years.Long Term Personal LoansThe most common of these loans are secured and unsecured personal loans; secured loans are based on a collateral that works as a security measure for the lender. Collateral may be, depending on the requested amount, a house, a car, or any other item that may cover the amount of the loan is something happens and you are not able to repay it.These loans are also based upon your credit records. If you have a good credit score you will be able to request a higher amount of money than if your credit is not so good. The good thing if your credit is not good enough, is that even when you cannot borrow a huge amount of money you will still be eligible.Secured loans can have very convenient interest rates and fees. You may also find great repayment conditions. You just have to search for different lenders and decide which loan is more like what you are looking for.Remember to get to know all the terms and conditions of that loans that you are thinking to apply for. Some lenders may charge you a penalty fee if you intend an early repayment.Different from secured loans, unsecured loans do not require a collateral to secure the repayment. These loans are usually a little more expensive, since the lender is taking more risks. The borrowed amount will always be lower than the amount offered with a secured loan, and this will also depend on your credit score. Generally, repayment terms offered for unsecured loans are shorter than those terms offered for secured loans.Short Term Personal LoansAs said before, these loans are meant for those unexpected situations that need fast solutions. In this group we can place, short term personal loans and payday loans.Short term personal loans are designed to offer a limited amount of money, that is around $20,000 depending on the lender, and usually have to be repaid in no longer than five years. Depending on the lender, you can be requested to place a collateral or not, in order to apply. These loans have higher interest rates than long term loans. As higher your credit score is, better will be the loan conditions you will be able to get.Payday loans are the other option in short term loans. These kinds of loan’s terms are no longer than two weeks, and the borrowed amounts of money are not very high. As repayment terms are no long, you will be eligible even with bad credit. Of course, with a good credit record, you will get better conditions.You can search for a lender on the Internet and apply from your computer. The response is almost immediate and you can have the requested money in your bank account the same day you fill in the forms. The only requirement is to provide your bank account details. You can either repay the money in your lender’s office or give your permission for taking the money back from your bank account on the loan’s due date. Some lenders may also require you to leave a signed check for the loan’s amount as a collateral.

Looking for a car requires making a lot of decisions. There are many factors to consider, such as price and payment. You have taken all the test drives you need. You have selected the manufacturer, model and color. Now you need to decide how to pay for the vehicle. If you have bad credit, this can seem to be a big problem.It was not that long ago when it was relatively easy to get a loan. Today it is not easy to get money when you need it. This is true for auto loans also. The choice often seems to be to take out two auto loans to finance the car. This choice results in further damage to your credit history. You should consider your payment options before you even start to look for the vehicle so that you are ready when you find the right car.Auto Loan BasicsAuto loans are generally considered secured loans. This is because the vehicle itself is collateral for the loan. If you have bad credit, this factor alone will help you obtain the loan you need to pay for the vehicle.Secured loans generally will have lower interest rates than do loans for the same amount for the same person. This is because the collateral can be repossessed to pay off the loan balance. For auto loans, the car can be repossessed to pay off the auto loan balance.As you determine the type of loan which will work for you, you need to next consider the down payment on the vehicle. The down payment will also affect your interest rate and the size of your monthly payments. The more you put down, the smaller the loan will be. The less you have to borrow from the lender, the smaller the monthly payment will be. The more you borrow from the lender, the higher your interest rate will be and the longer you will be paying off the loan.Shopping for an Auto LoanIf you have bad credit, almost every type of loan you might need is best found online. There will be many places you can get the loan. The auto dealership could offer you credit. Your bank could offer you a loan. If you belong to a credit union, you could get a loan through them. All of these sources can be more difficult to work with if you have bad credit. Chances are, if the lender has a physical, bricks and mortar presence, they will also have stricter qualifications for granting loans to people with bad credit.Looking online is your best option. Like most loans, you will need to demonstrate a steady job with a reasonable length of employment. The paycheck must be reliable. This will make it harder to qualify if you are self-employed or have irregular paychecks. You will need to have proof of citizenship when applying for an online loan.The Loan is Out ThereIt is possible to get an auto loan if you have bad credit. As with the actual purchase of the car, you will need to balance between what you want and what you can afford.Once you know the answer to that question, you can research a variety of lending sources open to you. Compare their rates and repayment requirements. Shop for the loan like you will shop for the vehicle. Just as you will look for the best price for the make and model you want, so you should look for the best auto loan available. By comparison shopping, you will be able to not only find the car you desire but you will also be able to get the loan you need to buy it. Bad credit does not need to stop you at all.

Summary
SPDN is not the largest or oldest way to short the S&P 500, but it’s a solid choice.
This ETF uses a variety of financial instruments to target a return opposite that of the S&P 500 Index.
SPDN’s 0.49% Expense Ratio is nearly half that of the larger, longer-tenured -1x Inverse S&P 500 ETF.
Details aside, the potential continuation of the equity bear market makes single-inverse ETFs an investment segment investor should be familiar with.
We rate SPDN a Strong Buy because we believe the risks of a continued bear market greatly outweigh the possibility of a quick return to a bull market.
Put a gear stick into R position, (Reverse).
Birdlkportfolio

By Rob Isbitts

Summary
The S&P 500 is in a bear market, and we don’t see a quick-fix. Many investors assume the only way to navigate a potentially long-term bear market is to hide in cash, day-trade or “just hang in there” while the bear takes their retirement nest egg.

The Direxion Daily S&P 500® Bear 1X ETF (NYSEARCA:SPDN) is one of a class of single-inverse ETFs that allow investors to profit from down moves in the stock market.

SPDN is an unleveraged, liquid, low-cost way to either try to hedge an equity portfolio, profit from a decline in the S&P 500, or both. We rate it a Strong Buy, given our concern about the intermediate-term outlook for the global equity market.

Strategy
SPDN keeps it simple. If the S&P 500 goes up by X%, it should go down by X%. The opposite is also expected.

Proprietary ETF Grades
Offense/Defense: Defense

Segment: Inverse Equity

Sub-Segment: Inverse S&P 500

Correlation (vs. S&P 500): Very High (inverse)

Expected Volatility (vs. S&P 500): Similar (but opposite)

Holding Analysis
SPDN does not rely on shorting individual stocks in the S&P 500. Instead, the managers typically use a combination of futures, swaps and other derivative instruments to create a portfolio that consistently aims to deliver the opposite of what the S&P 500 does.

Strengths
SPDN is a fairly “no-frills” way to do what many investors probably wished they could do during the first 9 months of 2022 and in past bear markets: find something that goes up when the “market” goes down. After all, bonds are not the answer they used to be, commodities like gold have, shall we say, lost their luster. And moving to cash creates the issue of making two correct timing decisions, when to get in and when to get out. SPDN and its single-inverse ETF brethren offer a liquid tool to use in a variety of ways, depending on what a particular investor wants to achieve.

Weaknesses
The weakness of any inverse ETF is that it does the opposite of what the market does, when the market goes up. So, even in bear markets when the broader market trend is down, sharp bear market rallies (or any rallies for that matter) in the S&P 500 will cause SPDN to drop as much as the market goes up.

Opportunities
While inverse ETFs have a reputation in some circles as nothing more than day-trading vehicles, our own experience with them is, pardon the pun, exactly the opposite! We encourage investors to try to better-understand single inverse ETFs like SPDN. While traders tend to gravitate to leveraged inverse ETFs (which actually are day-trading tools), we believe that in an extended bear market, SPDN and its ilk could be a game-saver for many portfolios.

Threats
SPDN and most other single inverse ETFs are vulnerable to a sustained rise in the price of the index it aims to deliver the inverse of. But that threat of loss in a rising market means that when an investor considers SPDN, they should also have a game plan for how and when they will deploy this unique portfolio weapon.

Proprietary Technical Ratings
Short-Term Rating (next 3 months): Strong Buy

Long-Term Rating (next 12 months): Buy

Conclusions
ETF Quality Opinion
SPDN does what it aims to do, and has done so for over 6 years now. For a while, it was largely-ignored, given the existence of a similar ETF that has been around much longer. But the more tenured SPDN has become, the more attractive it looks as an alternative.

ETF Investment Opinion

SPDN is rated Strong Buy because the S&P 500 continues to look as vulnerable to further decline. And, while the market bottomed in mid-June, rallied, then waffled since that time, our proprietary macro market indicators all point to much greater risk of a major decline from this level than a fast return to bull market glory. Thus, SPDN is at best a way to exploit and attack the bear, and at worst a hedge on an otherwise equity-laden portfolio.

Your stocks to watch for the week ahead are Cheniere Energy (LNG), S&P 500 biotech giant Vertex Pharmaceuticals (VRTX), Cardinal Health (CAH), Steel Dynamics (STLD) and Genuine Parts (GPC).

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While the market remains in correction, with analysts and investors wary of an economic downturn, these five stocks are worth adding to watchlists. S&P 500 medical giants Vertex and Cardinal Health have been holding up, as health-care related plays tend to do well in down markets.

Steel Dynamics and Genuine Parts are both coming off strong earnings as both the steel and auto parts industries report optimistic outlooks. Meanwhile, Cheniere Energy saw sales boom in the second quarter as demand in Europe for natural gas continues to grow.

Major indexes have been making rally attempts with the Dow Jones and S&P 500 testing weekly support on Friday. With market uncertainty, investors should be ready for follow-through day breakouts and keep an eye on these stocks.

Cheniere Energy, Cardinal Health and VRTX stock are all on IBD Leaderboard.

Cheniere Energy Stock
LNG shares rose 1.1% to 175.79 during Friday’s market trading. On the week, the stock advanced 3.1%, not from highs, bouncing from its 21-day and 10-week lines earlier in the week.

Cheniere Energy has been consolidating since mid-September, but needs another week to forge a proper base, with a potential 182.72 buy point formed on Aug. 10.

Houston-based Cheniere Energy was IBD Stock Of The Day on Thursday, as the largest U.S. producer of liquefied natural gas eyes strong demand in Europe.

Even though natural gas prices are plunging in the U.S. and Europe, investors still see strong LNG demand for Cheniere and others.

The U.K. government confirmed last week that it is in talks for an LNG purchase agreement with a number of companies, including Cheniere.

In the first half of 2021, less than 40% of Cheniere’s cargoes of LNG landed in Europe. That jumped to more than 70% through this year’s second quarter, even as the company ramped up new export capacity. The urgency of Europe’s natural gas shortage only intensified last month. That is when an explosion disabled the Nord Stream 1 pipeline from Russia that had once supplied 40% of the European Union’s natural gas.

In Q2, sales increased 165% to $8 billion and LNG earned $2.90 per share, up from a net loss of $1.30 per share in Q2 2021. The company will report Q3 earnings Nov. 3, with investors seeing booming profits for the next few quarters.

Cheniere Energy has a Composite Rating of 84. It has a 98 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share price movement with a 1 to 99 score. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 41.

Vertex Stock
VRTX stock jumped 3.4% to 300 on Friday, rebounding from a test of its 50-day moving average. Shares climbed 2.2% for the week. Vertex stock has formed a tight flat base with an official buy point of 306.05, according to MarketSmith analysis.

The stock has remained consistent over recent weeks, while the relative strength line has trended higher. The RS line tracks a stock’s performance vs. the S&P 500 index.

Vertex Q3 earnings are on due Oct. 27. Analysts see EPS edging up 1% to $3.61 per share with sales increasing 16% to $2.2 billion, according to FactSet.

The Boston-based global biotech company dominates the cystic fibrosis treatment market. Vertex also has other products in late-stage clinical development that target sickle cell disease, Type 1 diabetes and certain genetically caused kidney diseases. That includes a gene-editing partnership with Crispr Therapeutics (CRSP).

In early August, Vertex reported better-than-expected second-quarter results and raised full-year sales targets.

S&P 500 stock Vertex ranks second in the Medical-Biomed/Biotech industry group. VRTX has a 99 Composite Rating. Its Relative Strength Rating is 94 and its EPS Rating is 99.

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Cardinal Health Stock
CAH stock advanced 3.2% to 73.03 Friday, clearing a 71.22 buy point from a shallow cup-with-handle base and hitting a record high. But volume was light on the breakout. CAH stock leapt 7.3% for the week.

Cardinal Health stock’s relative strength line has also been trending up for months.

The cup-with-handle base is part of a base-on-base pattern, forming just above a cup base cleared on Aug. 11.

Cardinal Health, based in Dublin, Ohio, offers a wide assortment of health care services and medical supplies to hospitals, labs, pharmacies and long-term care facilities. The company reports that it serves around 90% of hospitals and 60,000 pharmacies in the U.S.

S&P 500 stock Cardinal Health will report Q1 2023 earnings on Nov. 4. Analysts forecast earnings falling 26% to 96 cents per share. Sales are expected to increase 10% to $48.3 billion, according to FactSet.

Cardinal Health stock ranks first in the Medical-Wholesale Drug/Supplies industry group, ahead of McKesson (MCK), which is also showing positive action. CAH stock has a 94 Composite Rating out of 99. It has a 97 Relative Strength Rating and an EPS rating of 73.

Steel Dynamics Stock
STLD shares shot up 8.5% to 92.92 on Friday and soared 19% on the week, coming off a Steel Dynamics earnings beat Wednesday night.

Shares blasted above an 88.72 consolidation buy point Friday after clearing a trendline Thursday. STLD stock is 17% above its 50-day line, definitely extended from that key average.

Steel Dynamics’ latest consolidation could be seen as part of a larger base going back six months.

Steel Dynamics topped Q3 earnings views with EPS rising 10% to $5.46 while revenue grew 11% to $5.65 billion. The steel producer’s outlook is optimistic despite weaker flat rolled steel pricing. STLD reports its order activity and backlogs remain solid.

The Fort Wayne, Indiana-based company is among the largest producers of carbon steel products in the U.S. It engages in metal recycling operations along with steel fabrication and produces myriad steel products.

How Millett Grew Steel Dynamics From A Three Employee Business

STLD stock ranks first in the Steel-Producers industry group. STLD stock has a 96 Composite Rating out of 99. It has a 90 Relative Strength Rating, an exclusive IBD Stock Checkup gauge for share-price movement that tops at 99. The rating shows how a stock’s performance over the last 52 weeks holds up against all the other stocks in IBD’s database. The EPS rating is 98.

Genuine Parts Stock
GPC stock gained 2.8% to 162.35 Friday after the company topped earnings views with its Q3 results on Thursday. For the week GPC advanced 5.1% as the stock held its 50-day line and is in a flat base.

GPC has an official 165.09 flat-base buy point after a three-week rally, according to MarketSmith analysis.

The relative strength line for Genuine Parts stock has rallied sharply to highs over the past several months.

On Thursday, the Atlanta-based auto parts company raised its full-year guidance on growth across its automotive and industrial sales.

Genuine Parts earnings per share advanced 19% to $2.23 and revenue grew 18% to $5.675 billion in Q3. GPC’s full-year guidance is now calling for EPS of $8.05-$8.15, up from $7.80-$7.95. The company now forecasts revenue growth of 15%-16%, up from the earlier 12%-14%.

During the Covid pandemic, supply chain constraints caused a major upheaval in the auto industry, sending prices for new and used cars to record levels. This has made consumers more likely to hang on to their existing vehicles for longer, driving mileage higher and boosting demand for auto replacement parts.

Fellow auto stocks O’Reilly Auto Parts (ORLY) and AutoZone (AZO) have also rallied near buy points amid the struggling market. O’Reilly reports on Oct. 26.

IBD ranks Genuine Parts first in the Retail/Wholesale-Auto Parts industry group. GPC stock has a 96 Composite Rating. Its Relative Strength Rating is 94 and it has an EPS Rating of 89.

US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 1.14%. While S&P 500 was trading at 3,701.66, up by 0.98% and Nasdaq Composite 10,690.60 was also up by 0.71 per cent

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US Markets in green on Friday; Dow 30 up over 345 points, Nasdaq Composite, S&P 500 up nearly 1%
Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. Source: Reuters
US Markets were trading in the green on Friday with Dow 30 trading at 30,678.80, up by 345.25 points or1.14 per cent. While S&P 500 was trading at 3,701.66, up by 35.88 points or 0.98 per cent and Nasdaq Composite 10,690.60 was also up 75.75 points or 0.71 per cent. A Reuters report said that today’s strength was on the back of a report which said the Federal Reserve will likely debate on signaling plans for a smaller interest rate hike in December, reversing declines set off by social media firms after Snap Inc’s ad warning.

Source: Comex

Nasdaq Top Gainers and Losers

Source: Nasdaq

Earlier today, Indian stock markets ended the week on a winning note. It was the sixth straight gains for equity markets. The BSE Sensex ended at 59,307.15, up by 104.25 points or 0.18 per cent from the Thursday closing level. Meanwhile, the Nifty50 index closed at 17,590.00, higher by 26.05 points or 0.15 per cent. In the 30-share Sensex, 13 stocks gained while the remaining 17 ended on the losing side. In the 50-stock Nifty50, 21 stocks advanced while 29 declined.

There are several potential financing options available to cash-strapped businesses that need a healthy dose of working capital. A bank loan or line of credit is often the first option that owners think of – and for businesses that qualify, this may be the best option.

In today’s uncertain business, economic and regulatory environment, qualifying for a bank loan can be difficult – especially for start-up companies and those that have experienced any type of financial difficulty. Sometimes, owners of businesses that don’t qualify for a bank loan decide that seeking venture capital or bringing on equity investors are other viable options.

But are they really? While there are some potential benefits to bringing venture capital and so-called “angel” investors into your business, there are drawbacks as well. Unfortunately, owners sometimes don’t think about these drawbacks until the ink has dried on a contract with a venture capitalist or angel investor – and it’s too late to back out of the deal.

Different Types of Financing

One problem with bringing in equity investors to help provide a working capital boost is that working capital and equity are really two different types of financing.

Working capital – or the money that is used to pay business expenses incurred during the time lag until cash from sales (or accounts receivable) is collected – is short-term in nature, so it should be financed via a short-term financing tool. Equity, however, should generally be used to finance rapid growth, business expansion, acquisitions or the purchase of long-term assets, which are defined as assets that are repaid over more than one 12-month business cycle.

But the biggest drawback to bringing equity investors into your business is a potential loss of control. When you sell equity (or shares) in your business to venture capitalists or angels, you are giving up a percentage of ownership in your business, and you may be doing so at an inopportune time. With this dilution of ownership most often comes a loss of control over some or all of the most important business decisions that must be made.

Sometimes, owners are enticed to sell equity by the fact that there is little (if any) out-of-pocket expense. Unlike debt financing, you don’t usually pay interest with equity financing. The equity investor gains its return via the ownership stake gained in your business. But the long-term “cost” of selling equity is always much higher than the short-term cost of debt, in terms of both actual cash cost as well as soft costs like the loss of control and stewardship of your company and the potential future value of the ownership shares that are sold.

Alternative Financing Solutions

But what if your business needs working capital and you don’t qualify for a bank loan or line of credit? Alternative financing solutions are often appropriate for injecting working capital into businesses in this situation. Three of the most common types of alternative financing used by such businesses are:

1. Full-Service Factoring – Businesses sell outstanding accounts receivable on an ongoing basis to a commercial finance (or factoring) company at a discount. The factoring company then manages the receivable until it is paid. Factoring is a well-established and accepted method of temporary alternative finance that is especially well-suited for rapidly growing companies and those with customer concentrations.

2. Accounts Receivable (A/R) Financing – A/R financing is an ideal solution for companies that are not yet bankable but have a stable financial condition and a more diverse customer base. Here, the business provides details on all accounts receivable and pledges those assets as collateral. The proceeds of those receivables are sent to a lockbox while the finance company calculates a borrowing base to determine the amount the company can borrow. When the borrower needs money, it makes an advance request and the finance company advances money using a percentage of the accounts receivable.

3. Asset-Based Lending (ABL) – This is a credit facility secured by all of a company’s assets, which may include A/R, equipment and inventory. Unlike with factoring, the business continues to manage and collect its own receivables and submits collateral reports on an ongoing basis to the finance company, which will review and periodically audit the reports.

In addition to providing working capital and enabling owners to maintain business control, alternative financing may provide other benefits as well:

It’s easy to determine the exact cost of financing and obtain an increase.
Professional collateral management can be included depending on the facility type and the lender.
Real-time, online interactive reporting is often available.
It may provide the business with access to more capital.
It’s flexible – financing ebbs and flows with the business’ needs.
It’s important to note that there are some circumstances in which equity is a viable and attractive financing solution. This is especially true in cases of business expansion and acquisition and new product launches – these are capital needs that are not generally well suited to debt financing. However, equity is not usually the appropriate financing solution to solve a working capital problem or help plug a cash-flow gap.

A Precious Commodity

Remember that business equity is a precious commodity that should only be considered under the right circumstances and at the right time. When equity financing is sought, ideally this should be done at a time when the company has good growth prospects and a significant cash need for this growth. Ideally, majority ownership (and thus, absolute control) should remain with the company founder(s).

Alternative financing solutions like factoring, A/R financing and ABL can provide the working capital boost many cash-strapped businesses that don’t qualify for bank financing need – without diluting ownership and possibly giving up business control at an inopportune time for the owner. If and when these companies become bankable later, it’s often an easy transition to a traditional bank line of credit. Your banker may be able to refer you to a commercial finance company that can offer the right type of alternative financing solution for your particular situation.

Taking the time to understand all the different financing options available to your business, and the pros and cons of each, is the best way to make sure you choose the best option for your business. The use of alternative financing can help your company grow without diluting your ownership. After all, it’s your business – shouldn’t you keep as much of it as possible?