Small Business Factoring
We often find ourselves speaking with business bankers and CPAs who have difficulty securing complete financial solutions for their small business clients. Sometimes, these clients are newer companies that have not been in business long enough to obtain traditional bank financing. That being said, these businesses are just as often well-established companies that simply need more working capital than a lender is currently willing to provide. The truth is that any business that experiences a delay between the time of invoicing and the time of payment are perfect candidates for small business factoring. According to a CNBC.com article written by Elaine Pofeldt:
“…it’s not just failure to raise money that can lead a business to fizzle. Many high-revenue businesses suffer from poor cash flow. They can’t make payroll or keep the lights on because there’s a big gap between when they finish their projects and when they get paid…”
Small Business Factoring Companies
Invoice factoring companies are generally more comfortable providing working capital to small businesses when compared to the more traditional lenders. Factors do not focus on their client’s credit worthiness or time in business, but rather they focus on their client’s customer. As long as the customer that is being billed is credit worthy, chances are that the client will qualify for small business funding.
When the client completes the work for their customer, they simply send a copy of the receivable (invoice) to the invoice factoring company. The factor then advances funds to the client, often within 24 hours or less. This results in nearly immediate cash flow for the client and eliminates the need for a line of credit. Small business funding companies are even able to work with clients who have blemishes on their credit, such as previous bankruptcies or tax liens. This opens the door to success for many small companies that have been struggling. When other lenders cannot help, it’s more than likely that factoring may be the best available cash flow solution.
How We Can Help
Orion Business Capital works with clients of all sizes to help secure the vital cash flow needed in order to thrive. Whether you are just starting out, or need working capital to facilitate further growth, give us a call today. We’re happy to answer any questions you may have and help secure the best invoice factoring solution for your unique needs. Oftentimes, we can have your new account established and ready to fund within a few days or less.