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Personal Assets
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An often overlooked way to raise capital is to sell some of your existing assets. This could be selling a car, boat, time-shares, property, or, if you are a business, accounts receivables. Factoring companies, or factors, buy accounts receivables for cash. Factors will often work with businesses from which banks shy away. These include businesses that are underfunded or with insufficient track records, limited management experience, or unproved products.

Issues to Consider

  • Research the asset's market on the Internet, in newspapers, and by making phone calls. If you are selling a car, for instance, you can check online for its current  Blue Book value and in newspapers to determine the price of your car model. Then call car dealerships or your insurance company to ask them how much they think the car is worth.
  • To maximize your profit, consider the target audience for the asset being sold. Choose the best sales method accordingly, whether it is word-of-mouth, consignment shops, auction, newspaper ads, or online.
  • The asset is readily available for sale.
  • You net all the profits.
  • Factoring can help you even out your company's cash flow without diluting equity or incurring debt.
  • Liquidation may not be as easy as you think.
  • The market may not place the same value on the asset as you do.
  • The asset can no longer be used as collateral against future loans.
  • Factors' fees and rates can be high.

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