Small Business Factoring
5 Ways Small Business Factoring Helps You Stay Profitable
Need a quick infusion of cash to keep your small business going? A traditional bank loan isn’t your only option. In fact, bank loans often aren’t available to businesses that are just starting out or rapidly growing.
But we have a great solution – small business factoring. Factoring is a type of financing where we’ll give you cash upfront for your accounts receivable. Instead of having to wait for this money, you’ll be able to spend the money today!
Here are five situations when small business factoring is an ideal solution:
1. When You Already Have a Lot of Debt
As your business grows, you may have to take out loans or otherwise incur debt. Debt is a healthy part of any business, but your balance sheet can be marred by too much debt in some situations. For example, if you’re looking for investors, a lot of debt can mean that your valuation is smaller or fewer people are willing to take the risk to invest.
If you already have a lot of debt, you might also get turned down for more loans through banks or credit unions. US Funding can help, because we provide a flexible way to get you the cash you need without your business incurring new debt.
2. When You Need Cash Fast to Grow
In some businesses, growth is explosive, and when that happens, banks just can’t keep up. It can be weeks or even months before you receive an answer about financing, and by that time, potential clients and contracts have moved on to a company that can handle their needs.
With small business factoring, you can get the cash you need to continue growing extremely quickly – often the money is in your bank account in 24 hours or less!
3. When You Need to Comply with New Regulations
Depending on your business, you might have to comply with government rules and regulations that govern your industry. When the rules change, you might be scrambling to find the money to comply.
With small business factoring, you can get the cash you need very quickly, so you can update your plants or processes and avoid hefty regulatory agency fines.
4. When You Need to Fill Orders
Can’t keep up with orders? It sounds like a good problem to have, but in actuality, not having the capital for fulfillment can cause your company to go out of business.
If you receive a large purchase order, small business factoring can help you pay for the cost of materials and manufacturing.
5. When You Are Facing Litigation
Legal cases can sink a small business. Even when you know you have an open and shut case, the expense of lawyers and court costs can seem insurmountable. With factoring, you can rest assured that you have the money needed for litigation.
We offer competitive rates and can make a decision quickly, so you don’t have to wait for a bank or investors to give you the cash you need to win your case.
Ready to learn more about factoring for small businesses? Call us today at 336-812-9767.