Startup Capital: What You Should Know About Government Business Grants
Thursday, December 12, 2013 This article is part four of the Factor King® blog series “Startup Capital: Sources of New Business Funding” which explores the most common financing options for a business in need of startup capital, expansion capital, or short-term cash flow.
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If you’re considering obtaining a government grant for your small business, there a few things you should know before starting the grant application process:
- Funded by tax dollars, government grants require very stringent compliance and reporting measures.
- Since grants are funded by tax dollars, they usually apply to non profit organizations or small businesses engaged in scientific research and development.
- State and local programs and nonprofit organizations are another source of business grants.
- Government grants often require a business to match funds or combine the funds with other forms of financing such as a loan.
- You must register your business or organization with the federal government's grant program before you can apply for grants.
- The Small Business Administration (SBA) does not provide government grants and instead helps small businesses find financial assistance programs or help in obtaining commercial loans.
According to Frank Skelly of Factor King®, “Government grants are not for every business. There are very specific qualification requirements that are hard to meet. Factoring, on the other hand, provides funds to any business that maintains commercial accounts receivables. The application process is a cinch and immediate funding is available upon approval.”
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About FACTOR KING®
Did you know that Factor King® offers a quick and easy way to get cash for your business without the need to meet stringent requirements? Factor King is a direct financial service provider that specializes in the Factoring of invoice receivables for companies that maintain commercial accounts receivables. We can manage your record keeping and offer fast processing of accounts receivable payments. Apply now to convert your company’s assets into immediate cash!
Related Articles:
Startup Capital: Pros & Cons of Venture Capital and Private Equity
Startup Capital: Small Business Bank Loans
Startup Capital: Sources of New Business Funding
5 Tips for Managing Invoiced Receivables








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