Does Your Small Business Need a Factoring Company?
Written by US Funding on September 18, 2015
As a small business owner, you know that the success of your business depends on how well you capitalize on the “ups” and weather the “downs” of market demand, inventory control, and the overall economy. Sometimes, all you have to do to make it through a financial challenge is exactly what you’ve been doing – make smart decisions, be wise about spending, make your operation efficient – use common sense. But, sometimes your business may need a little outside help to get over a financial hump. That’s when you need to know the advantages of doing business with a reputable factoring company like US Funding.
If your small business needs cash immediately to handle a temporary situation, a traditional bank loan may not be best. Or, a bank loan may not even be possible if your business is new or if it’s expanding rapidly. What our factoring company offers is a method of financing that furnishes cash based on your own outstanding accounts receivable. You use your own money, but you get it immediately so you can direct it where you need it.
Does your business carry a lot of debt?
Have you taken out loans or otherwise added debt to your company’s bottom line? Some debt is well-advised and a reasonable way to fund business. But, if your financials show too much debt, it could scare away investors or cause you to be turned down for additional loans or have to pay higher interest.
Do you need cash immediately to support growth?
You may be faced with a sudden period of explosive growth and your company’s normal income stream can’t cover all the expenses. Banks usually take weeks to respond to financing requests, during which potential new contracts would have been awarded to a business that can handle that company’s needs.
Have government regulations changed?
If you have a business that falls under government regulation and the fines and penalties imposed for non-compliance, you may need capital to meet changing guidelines. New legislation can go into effect at any time, creating a need for immediate funds to upgrade equipment or re-configure processes.
Did sales and marketing work exceptionally well?
Your business may be enjoying a surge in new orders, but you don’t have the funds to fulfill them all at once. Or, you just got one huge new order and need to cover the cost of materials and manufacturing. Businesses have gone under because they didn’t have the finances to keep up with new customers.
Is your business involved in a lawsuit?
Small businesses don’t usually have a large pot of money to cover litigation. Even if the facts of the case are in your favor and it seems open-and-shut, there’s the cost of attorneys and court fees to consider. Partnering with a factoring company will give you peace of mind.
Want to know more? Call US Funding at 336-812-9767 or 866-812-9771 to discuss how our factoring company can help your small business.