Invoice Factoring Endorsed by BusinessWeek Article
A recent Business Week article has some excellent tips for small businesses about managing cash flow. One of the suggestions it makes: try invoice factoring. It features the following interesting case study about a small Florida business explaining how factoring kept them independent:
Broward Aviation Services of Pompano Beach, Fla., buys and sells commercial airplane parts. So it needs plenty of ready cash to buy before competitors do. That lets it get a better price, too. “If you have cash, the deals come to you, says Timothy Pine, vice-president and partner in the nine-employee, $7.5 million company. When Pine co-founded the company in 1999, cash was tight and banks turned down his requests for credit. Broward sold its receivables to a factor immediately receiving about 80% of their value and the rest as [the factor] collected from Broward’s customers. Then Broward could forge ahead without taking on venture capital. Plus, says Pine, “The banks won’t lend to you until you’ve built up a cash record. Factoring allowed us to stay independent.
We at Charter Capital can share similar testimonials to the one contained in the BusinessWeek article. We’d be happy to describe how we have helped many small businesses get through cash crunches and go on to additional successes. Just ask.
Wall Street Journal Article Endorses Invoice Factoring
A recent Wall Street Journal article has some excellent tips for small businesses about managing cash flow through accounts receivable factoring.
Factoring isn’t for everybody. But for companies that need cash quickly – or don’t want to hassle with banks – it’s one way to go., writes Richard Gibson of the Wall Street Journal.
The article concedes that invoice factoring is a great way for some businesses to get started, because companies with little or no credit history can acquire cash. What most concerns factors is the credit worthiness of the end customer, not the business or its owners.