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Here is Why Healthcare Vendors Choose AFG

In light of recent events, manufacturers around the world are adjusting their production lines, while healthcare providers stock up on crucial equipment.

Alliance Funding Group has been funding projects for healthcare providers of all sizes and specialties: from single practitioners to hospitals, since 1998.

We pride ourselves in our strong partnerships and excellent customer care that help vendors in the healthcare industry attract, secure, and retain more business.

“We have a lot of experience in the space and understand the equipment, business needs, and the fast-paced environment in the healthcare industry. We stay available after hours and on weekends to make sure we can execute and fund projects quickly and efficiently. We are the extension of our partners’ sales team.”

– Mike Harmon, VP of Sales

AFG’s Competitive Offer

We fund a multitude of business needs in the healthcare industry. Being privately owned allows us to offer creative lease structures that perfectly suit our clients’ demands.

Special vendor rates start at only 3.99% on capital leases. Human underwriters and consistently swift funding make AFG one of the most competitive resources for healthcare businesses. We offer 110% financing to cover soft costs such as delivery, installation, software, and taxes.

Besides, we extend the Unsecured Working Capital Program to help providers address their short-term monetary needs within 24 hours. Many equipment leasing and EFA approvals automatically include an option for unsecured credit access for our customers*.

Healthcare Equipment and Supplies Vendors Choose AFG

Numerous companies in the space consistently choose AFG to fund their equipment and supply needs.

Alliance Funding Group remains fully operational throughout 2020. We are offering step-up and deferral options to help American practitioners and health centers provide the best possible patient care during these unprecedented times.

Join our Vendor Program and get access to experienced salesforce, and the ability to fund various credit profiles with the starting rate as low as 3.99% on capital leasing for your customers.

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Filing and Paying Business taxes on time

There is no other way to put it. We all have to pay taxes every year. Even though the government is trying to help businesses mitigate possible losses, taxes need to be paid sooner or later.

Many small businesses run on thin margins, and a couple of unexpectedly slow months can put your business at risk. We understand that, and that is why we designed a program specifically for a situation like that. No more need to pile up cash before the tax season! You can get a competitive business loan to help you cover the tax payment and scatter the amount over the next few months.

Apply now and get up to $250,000 to pay taxes on time!

 

Filing and Paying Business taxes on time

 

IRS charges interest on outstanding tax balance

The IRS treats the outstanding (underpaid) tax balance as a loan. That means that you will pay between 4 and 6 percent in interest charges, in case your corporate taxes aren’t completely covered.

Using an appropriate business loan will save you the trouble of dealing with the IRS later in the year, and (unlike the IRS), you would be eligible for a write-off in the coming year.

 

Extra Penalties

In addition to the accrued interest, the IRS imposes on late payments. There are steep penalties that you may have to pay in addition to the interest charges. Many sources online suggest that companies should seek a business loan a few months prior to tax season so that they have emergency access to money.

Our article outlines various sources of working capital loans that you may consider depending on the amount you need, available resources, and timing.

 

More punishments from the IRS

As we mentioned earlier, any outstanding tax balance would be treated as a loan. Besides all other penalties, the IRS can issue a tax lien on your business or even personal taxes and claim them in place of the missing amount.

As an extra spoke in your wheel, tax liens usually have a quite severe impact on your credit history. It can drive down your business and personal credit, making it harder to secure beneficial credit in the future.

 

What can you do?

Fortunately, our Unsecured Working Capital Program is one great way to help you do business with confidence this Spring! Unsecured money is the easiest to get and poses zero risks to your company’s assets.

You can get the funds on the next business day!

Need to pay business taxes? Apply now and get up to $250,000 within 24 hours!

 

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Is Interest Expense Tax-Deductible?

Business loans are powerful tools that allow companies to improve their services, acquire better equipment, and sustain through slow periods. Simply put, a loan can be used to cover a large variety of expenses.

Making sure all your expenses are accounted for during the tax season is crucial to compliance and retaining cash in your business. This article will focus on working capital and how you can benefit from interest tax deductions.

At AFG, we use a short-term loan structure, which allows you to get the most benefit when you file your taxes!

Need to take out a working capital loan? Apply now and get up to $150,000 within 24 hours!

How to make sure you are eligible for a tax write-off?

Before understanding deductions, you should make sure that your type of loan and use of the money would qualify for a write-off. Here are the general requirements:

  • You have to borrow from a legitimate business lender

Your loan has to come from a bank or a business lender. It may sound self-evident, but many startup owners tend to borrow from family and friends. Since they are not an accredited lender, such loan would not be eligible for a tax write-off.

As a general rule, the IRS is very suspicious of any private party funding. That is because personal agreements may not be defined as “loans” in the legal sense of that word. Therefore, only a loan that has a clear payment schedule and makes you legally liable to repay will qualify.

  • You must spend the money

When you take out a short-term working capital loan, the requested amount of money is wired to your account. Most intent to use it, yet you have the option to keep in your bank account until you pay it back.

In order to be eligible for the deduction, you have to spend the money.

Doing the math

As mentioned above, a working capital loan is a short-term product. That means that you will likely expend all the interest in the same year or split between two years.

Different working capital products use either a standard annual percentage rate (APR) or a factor rate, depending on terms of your contract. Therefore, the amount of interest paid will be different for every situation. 

What’s next?

Alliance Funding Group is compliant with the tax laws, and all our products allow you to benefit from tax write-offs every single year.

With our Unsecured Working Capital Program, it is easy to know your exact interest amount from the get-go! We use simple factors and provide you with a fixed cost of capital so that you can make an educated business decision.

Get a free quote with no effect on your credit today and benefit from the tax write-offs this year!

Note: This article should not be taken as tax advice. AFG recommends that you consult your accountant or tax advisor.

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Working Capital: What it is and why is it important?

Working capital — the money used to cover daily spending. Keeping track of the assets that can be put toward immediate expenses is essential for any successful business.

Maintaining steady and consistent cash flow is one key to a less stressful life as an entrepreneur. For some, cutting back unnecessary expenses may be sufficient to sustain a healthy bank balance and do business worry-free most of the time.

However, for many small and medium-sized businesses, there are various reasons to raise additional working capital either on a short-term or continuous basis. This article will describe different types of working capital loans, explain when you should consider taking one out, and what options are available.

Need to take out a working capital loan? Apply now and get up to $150,000 within 24 hours!

What exactly is Working Capital?

Working capital is the difference between your current assets and current liabilities.

Current Assets represent the total worth of your company’s cash, accounts receivable, inventory, prepaid expenses, and other short-term assets that will turn into cash by the end of the fiscal year. 

Current Liabilities sum up the debts and accounts payable that must be paid within the next 12 months.

Measuring working capital helps you understand how much money there would be left after you pay all the bills.

How much Working Capital do you need?

Many companies set Current Ratio goals to help stay on track. If you have a benchmark that you try to maintain, figuring out the amount needed should be easy! Here is the formula:

Current Ratio = Current Assets ÷ Current Liabilities

As a rule of thumb, you should always stay at or above 1. That means that your business has enough money to at least cover what it owes.

Most would advise, however, that your business should aim at the ratio between 1.2 and 2.0. Ultimately, the more of extra capital you have at hand, the more investments, marketing, and expansion money is available for you to grow.

Want to learn more about working capital? Talk to a knowledgable manager at Alliance Funding Group now!

When Can Additional Working Capital Come in Handy?

Inconsistent cash flow

A big job opportunity came your way, but the customer wants to pay at the end of the project? Your clients take too long to pay their invoices? Situations like that happen all the time and are standard in some industries. Yet, being short on money may disrupt your perfect pay history or limit you on marketing and payroll expenses. A working capital loan helps you cover all the costs to stay on track.

Seasonal sales fluctuations

Fixed expenses may become a struggle during the slow season, while variable costs may cause trouble right before it picks up again. A working capital loan provides funds for you to stay afloat during the offseason and stock up before holidays.

Growing your business

Stagnation is no fun. Companies have to spend a lot of money on current operations. Expansion projects may drain the cash reserves and put your business at risk. Proper planning and budgeting is undoubtedly one way to avoid going upside down. A working capital loan can help you move forward with ambitious projects faster and maintain positive cash flow.

Additionally, some extra working capital may come in useful when training new staff, purchasing equipment, and ultimately taking on projects that will pay off in the future.

Cash cushion

If hearing bad news from the bookkeeper is your least favorite thing, having quick access to cash may help prevent unnecessary problems. Working capital programs allow your business to easily afford emergency spending and keep you out of trouble.

Need more help with understanding your options? Talk to an experienced account manager today, no pressure!

Types of Working Capital Loans

Installment (Term) Loans are issued in one lump sum. You are then expected to pay it back in equal regular installments every month or week.

Installment loans work great for established businesses that are looking for long-term financing.

SBA Loans

SBA Loans are offered by the Small Business Administration, an organization that assists companies in raising money through government-supported loans. 7(a) loans — the most popular type — allow to borrow up to $5 million and can be used for many everyday business purposes. The government may partially guarantee a loan if your business does not have enough collateral to pledge.

That said, it may be much harder to qualify for government-backed loans compared to banks and private lenders.

Lines of Credit

Lines of Credit provide access to up to a certain amount of money. You can draw what you need at any time. Mostly, such programs offer revolving lines of credit, which means you can use the funds repeatedly after repaying the debt. Like a credit card.

A revolving working capital line of credit may be beneficial if you have not decided on the amount or need to have the ability to draw money quickly in case of an emergency.

Tip: Keep an open line of credit under your company and pay timely to build an outstanding business credit history.

Invoice Financing

Invoice Financing (Factoring) is a product that helps you cover receivables. Ultimately, when you use invoice factoring, a lender will buy the outstanding invoices for a fixed price and then collect on those invoices as a repayment.

Invoice factoring helps companies leverage the expected influx of cash before it is received.

Short-Term Loans

Short-Term Loans are similar to installment loans with two main differences. First, the terms typically do not go further out than 18 months. Second, you pay a fixed fee instead of an interest rate.

A short-term business loan is an excellent source of additional working capital because most of the needs that business owners may want to cover are also short-term.

How Do I Know I am Ready for a Working Capital Loan?

  • Have you explored the available options?
  • Do you have a plan and budget for your upcoming spending or investment?
  • Will the loan make your business situation better, once it is used and paid off?

What’s next?

It just so happens that Alliance Funding Group offers #1 unsecured working program in the United States.

Consider this:

  • Zero risks for your business assets
  • Unbeatable rates
  • Renewal discounts
  • No prepayment penalty

Get a free quote with no effect on your credit today, get funded within 24 hours!