In recent years, small and medium-sized business owners have been able to gain ground by utilizing alternatives such as factoring facilities, purchase-order financing and supplier guarantees. All these vehicles are financing solutions designed to alleviate cash-flow issues while maintaining healthy balance sheets as business owners try to get on with their day-to-day business and continue to grow.

According to the Small Business Administration, Labor Statistics and 2011 U.S. Census, since 1995 small businesses have created about two out of every three new jobs. That’s 65% of total net job creation in the U.S. In essence, small firms employ more than half of the private sector workforce. Small business is defined as a business with fewer than 500 employees, a definition adopted by the Census Bureau, the Bureau of Labor Statistics, the Federal Reserve, and the Small Business Administration.

In a post-crisis world of financial turmoil, credit from financial institutions for this sector became almost scarce, as traditional lenders could not accommodate small and medium-sized business loans. As a result, many mainstream business owners discovered alternative lending solutions, concepts that have been around since the Roman Empire but which are underutilized in today’s society.

Common solutions to cash-flow issues and full details can be seen on the product sheets on these pages:

Let’s look at invoice factoring as an example. The comparison chart below demonstrates factoring versus other types of traditional funding.

As small to medium-sized businesses struggle to find funding sources, they discover there are numerous benefits of invoice factoring, including a simple application, no personal guarantees, approvals based on your client’s credit (not yours), and you can maintain a healthy balance sheet by not taking on debt.

Factoring gives the ability to control your cash flow because you know how much to factor and when to factor it. This gives you quick cash instead of waiting for 30-45 days before receiving invoice payments.

If this type of funding seems appealing, call us anytime to discuss your needs: 877-545-1311. We’ll give you a straight-forward answer and lead you in the direction you need to be.