Funding for Working Capital Shortfalls
Our accounts receivable factoring program can help businesses meet payroll or other essential obligations in as quick as a week.
Factoring Program Overview
- $100,000 to $30 Million
- Competitive Advance Rates
- Non-Recourse
- No Audits
- No Financial Covenants
- Most businesses with strong customers eligible
We specialize in difficult deals:
- Start-ups
- Weak Balance Sheets
- Historic Losses
- Customer Concentrations
- Poor Personal Credit
- Character Issues
| We focus on the quality of your client’s accounts receivable, ignoring their financial condition. This enables us to move quickly and fund qualified businesses including Manufacturers, Distributors and a wide variety of Service Businesses in as few as 3-5 days. Contact me today to learn if your client is a fit. |
- Beyond the Bank Loan: Using Factoring to Bridge Your Working Capital Gap
Your business is growing. Sales are up, your team is busy, and you just landed another major contract. On paper, you are highly profitable.
Yet, when you look at your bank balance today, the numbers tell a different story. You need to make payroll on Friday, purchase inventory for that new contract by Monday, and cover rent next week.
The money is “there”—it’s just sitting in your customers’ bank accounts instead of yours.
This is the classic working capital shortfall. It’s the painful gap between delivering your service and actually getting paid for it. In the B2B world, where Net-30, Net-60, or even Net-90 terms are standard, this gap can stifle growth and cause immense stress.
You shouldn’t have to stall your business growth while waiting for clients to pay. Fortunately, there is a proven financial tool designed specifically to bridge this gap: Invoice Factoring.
The Problem: The “Asset Rich, Cash Poor” Trap
Many strong businesses fail not because they lack customers, but because they lack liquidity.
When you offer credit terms to your clients, you are essentially acting as their bank with zero percent interest. While your invoice sits on their desk for 45 days awaiting processing, you still have immediate operational costs.
If you try to go to a traditional bank to bridge this gap, you often face a lengthy application process, demands for years of profitability statements, and rigid collateral requirements. If you need cash this week, a traditional bank loan rarely helps.
The Solution: Invoice Factoring Explained
Invoice factoring (also known as accounts receivable financing) is not a loan. It’s the sale of an asset.
Your unpaid invoices are assets. Factoring allows you to sell those outstanding invoices to a third party (a “factor”) for immediate cash. Instead of waiting weeks or months for payment, you get the majority of the invoice’s value within 24 to 48 hours.
How It Works in 3 Simple Steps:
- You Invoice Your Client: You deliver your goods or services as usual and send the invoice to your commercial (B2B) or government customer.
- You Receive an Advance: You submit a copy of that invoice to the factoring company. They verify it and deposit a large percentage of the invoice face value (typically 80% to 90%) directly into your bank account, usually within a day.
- The Final Settlement: Your customer pays the invoice directly to the factoring company according to their usual terms (e.g., in 45 days). The factor then sends you the remaining balance (the “rebate”), minus a small factoring fee for their service.
Why Growing Businesses Choose Factoring
Factoring is particularly valuable for businesses in industries like staffing, transportation, construction, manufacturing, and professional services. Here is why it often works better than traditional financing for working capital shortfalls:
- Speed is Everything: The application process is fast, and funding happens within days, not months. When you have a payroll shortfall, speed is non-negotiable.
- It’s Based on Your Customers’ Credit, Not Yours: Banks look heavily at your credit history. Factors are more interested in the creditworthiness of the customers paying the invoices. This makes it ideal for newer businesses or those with less-than-perfect credit.
- No Debt on the Balance Sheet: Because it’s an asset sale, it doesn’t typically show up as long-term debt.
- Unlimited Scalability: The amount of funding grows as your sales grow. The more you invoice creditworthy clients, the more funding you can access. You won’t “max out” a credit line just as you hit a growth spurt.
- Outsourced Collections: The factoring company often handles the collections process, freeing up your team to focus on generating new business rather than chasing old payments.
Stop Waiting, Start Growing
A working capital shortfall is a speedbump on your road to growth. Don’t let slow-paying customers dictate the pace of your business expansion.
If you have solid B2B customers but shaky cash flow due to payment terms, factoring could be the tool that unlocks the capital you’ve already earned.
Are you tired of the 60-day waiting game? [Link to Contact Page/Consultation Request] Contact us today for a free analysis of how invoice factoring can stabilize your working capital.
