Business Financing For Self Employed People

Bloomberg published an interesting article about boosting the economy by helping the self employed. Many of these are laid off workes that have reinvented themselves as small businesses. They face the same challenges than most larger business owners. Actually, they face worse challenges because many don't have substantial capital and end up living paycheck to paycheck - or more specifically - customer payment to customer payment. One way to break this cycle and to help the small business grow is to use a business financing solution such as factoring.

There is a growing field of companies that offer small business factoring specifically to self employed individuals. As opposed to most factoring companies which only work with businesses that invoice more than $50,000, these small business factoring specialists work small businesses only - those that invoice *less* than $20,000. Also, the qualification requirements are easier than those of conventional factoring.

Lastly, another option that is available to small business owners is the SBA microloan program (not to be confused with the SBA 7(a) Business Loan programs). This little known program is a gem for self employed individuals. Their maximum loan amount is $50,000, but their average loan is for $13,000 - just right for most self employed folks.