Improve Your business credit score with working capital.
By choosing factoring as your funding solution, it improves cash flow for your business. In most cases, the improved cash flow allows you to pay vendors quickly, build a better credit rating, and enable you to get the best terms from your vendors. Factoring is not a loan, it’s an advance on your outstanding receivables for a fee. When you factor, no debt shows up on your balance sheet, on a traditional loan, it does.
Sometimes it takes 30,60 or 90 days for your client to pay you, factoring is a great solution to keep the cash flowing into your business. Factoring also allows you to grow your business by submitting the unpaid invoices to the factoring company and they give you up to 85% of its value. When you factor invoices, the funding is based on the financial strength of “your customers,” not on “your personal” FICO or business credit score.
I’ve compiled the “Top 10 Reasons” companies turn to our funding solutions. These are the 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
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. Utilizing factoring, an advance on your outstanding receivables, is a good way to improve your credit while maintaining a steady cash-flow. 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.
Let us add you as a satisfied client today. Call Greg Porter, Vice President, Capital Funding Solutions, Inc. (877) 545-1311 Ext. #1 to confidentially discuss how we can help grow your business. Also visit our website at www.cfsfunds.com to read more about how we can help you.