Small Business Factoring; Solves The Cashflow Issue
You know those days when you really love what you do for your career. This article is about just one of those days. I did a deal for a client that Discount Factoring was the absolutely perfect option for his business and everything went off without a hitch.
In this scenario, my client is an industry service provider for the major companies in the Telecommunications Industry. They are going through some changes in technology right now in their industry My client has been able to elevate himself as a preferred supplier by the Telecom Companies and he has been awarded some significant contracts.
Great news right? Well, yes it is, but now he has to hire more people, buy more equipment and supplies not to mention travel more. Now this should not be a problem except that the terms of collection are net 60 days. So all the work he is performing today will not be paid for until 2 months from now and his supplies need to be paid net 30 and his staff are paid bi-weekly.
This is a common problem of cashflow, and is a major hurdle for companies when they experience rapid growth. Of course the first reaction is to go to the bank and get an Operating Line of Credit.
Unfortunately, the bank did not look favorably on the application and denied it promptly as there was insufficient financial data to satisfy the bank guidelines.
Thankfully, we have a financial tool called Small Business Factoring. With this financing, the owner now has access to 85% of the invoice face value within 24 hours of the invoice being raised. Once the customer pays the invoice, the company will be able to get the money returned, less the finance fee..
The deal came to me on Tuesday and Legal docs were issued on Friday then the funding took place on Monday not even 1 week from application to funding.
Wade Henderson – very Professional – 15 yrs in the Business Finance Field – reputation for getting the deal done. IMMFinancial.com factoring recievables recievable factoring