Finance Growth without a Loan
Small to mid-size businesses are
continually faced with waiting 30 to 60 days to get paid on their
invoices, which really puts a strain on their cash flow.
Where large companies can usually
afford to wait it out, small and mid-size businesses can’t. This can
have a serious affect on managements’ ability to pay the company
bill or meet payroll. A cash flow shortfall can also affect the
business’ ability to fulfill orders because the cash is tied up in
unpaid invoices.
How can you get business cash without a
loan?
Invoice factoring, also known as
accounts receivable factoring, is a financial tool that allows
businesses to capitalize on the power of their outstanding invoices.
This form of financing is a valuable mechanism to turn your invoices
into immediate cash, enabling you to fund your business operations.
It is not very well known, but invoices from strong credit worthy
commercial clients are excellent collateral, especially for factors.
Most banks will not accept accounts receivable as collateral, but
invoice factoring companies are more than willing to provide you with
financing based on them. In most cases, a factoring provider can
provide funds when a commercial bank cannot.
Why use Invoice Factoring?
The reason many businesses make this
move is to ensure the continuous flow of cash to the business
without sacrificing equity or incurring debt. Essentially,
businesses that use factoring are focusing on having most of the
money now rather than all of it later. It can take time to collect
on an invoice, so when a company finances its accounts receivable,
they are getting their money faster and without the hassle of the
collection process.
In today’s struggling economy, freeing
up working capital through factoring can prove to be vital. Access
to immediate cash can be invested into new equipment, used to pay
bills, or used toward payroll. Of course, the alternative is to
chase the customer for the invoice payment and defer everything else
while the money is tied up in the collection process.
Related Articles:
Sales Down? Stop Blaming the Economy and Increase Profits
Improving Cash Flow in Tough Times
Forbes.com Article Endorses Factoring
Survey: 2009 Expected to be Rough For Entrepreneurs
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Charter Capital services many industries. Here are just a few of the industries
we are currently financing:
Trucking and Freight
It has never been easier for trucking companies and freight brokers to get cash
with Freight Bill Factoring from Charter Capital. We purchase your freight bills
and fund you within 24 hours, so you don't have to wait to get paid.
Staffing Firms
We can help you grow your staffing company with unlimited payroll funding ,
whether you're a start up or a multi-million dollar
temp-staffing agency. Our
clients provide staffing for various industries including Professional, Office
Services, Medical, and Manufacturing.
Security Firms
Demand for security services in the USA is on the rise. Be financially prepared
to gain your share with a FactorLine facility only from Charter Capital.
Manufacturing
If your business is a manufacturing plant, distributor,
packaging company, or
any business that invoices to credit worthy customers, then a FactorLine from
Charter Capital can accommodate the working capital funding needs of both new
manufacturing companies as well as those that have been around for years.
Technology Staffing Firms
Service providers such as technology
consulting and staffing firms are great candidates for our FactorLine accounts receivable
funding service, enabling you to increase your cash flow without the need
for bank loans. We are always adding new industries and will consider factoring
service providers in any industry.
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