Skip to main content

Top 10 Reasons Companies Choose Factoring

By July 5, 2022CFS Blog

I’ve Compiled the “Top 10 Reasons” Companies Turn to Our Funding Solutions. Here are 10 typical situations clients are faced with prior to qualifying for our funding programs: 

1.) Slow paying customers; companies experiencing cash flow shortages due to a slow turnover in accounts receivable. 

2.) Business is booming; sales growth is outpacing available working capital or bank credit lines.

3.) Accelerated success; fast growing companies whose past earnings and sales histories do not justify a traditional bank loan. 

4.) Business has landed government contracts; and cannot wait 90 days to receive payment.

5.) Seasonal business/uneven sales patterns; sales cycles or growth spurts causing a strain on cash flow. 

6.) Funds needed for operations; working capital must be preserved for other vital operations such as overhead, manufacturing, R&D, capital equipment or marketing. 

7.) New company; start-up businesses; with no financing base/history.

8.) FICO/Business Credit Score issues; owners/principals with poor to bad credit and cannot obtain traditional financing. 

9.) Credit line issues; a company having lost their line(s) of credit. 

10.) Need raw materials; fast growing companies whose past earnings and sales histories will not justify the increased borrowing necessary to acquire needed raw materials and supplies. 

Finding funding for your business when a traditional loan is not an option is easier than you think. A good example of this type of funding is factoring, an advance on your outstanding receivables. When you factor invoices the funding is based on the financial strength of “your customers,” not on “your personal” FICO and/or business credit score.

We have the ability to design a solution based on your unique business needs. For more information on this or other alternative lending solutions for business, please contact me: