small business factoring

Control Working Capital With Invoice Factoring

Business owners know that managing working capital and maintaining positive cash flow is critical to surviving as Small to Medium Size Enterprise.  This is challenging, especially in the start up phase.  Business owners looking for additional financing to enhance their cash flow are often disappointed when banks explain that they are not start up lenders.

Some business owners are forced to take on a partner to raise additional capital.  Often, the new partner will demand a large share of the company for a small investment.  This is often the most expensive financing choice a business owner can decide on. 

Banks often require at least two years of profitable financial statements before they will consider making a loan.  Since the bank wants to be repaid, they will also want to see your plan for paying back their loan.  These two conditions will cause most young companies to not qualify for a bank loan. 

Bridge the Gap with Receivables Factoring

Many business owners have discovered that receivable factoring provides the perfect bridge financing to help them grow their business.  Business owners will take advantage of the consistent cash flow that invoice factoring delivers to grow their company until they do qualify for a traditional bank loan or become self-sufficient.  Factoring offers numerous benefits to their clients:

  • Invoice factoring provides an unlimited source of working capital, limited only by the amount of business you generate.
  • Advances are based on the account debtor’s credit worthiness, not yours or your company.
  • Factoring will improve your credit rating.
  • Invoice factoring will finance new projects.
  • Invoice factoring provides the money needed for payroll.
  • Clients factor invoices only when they need money.

Factoring companies focus their underwriting on the credit strength of your customers.  So, business owners who have damaged their personal credit score by financing their company will still qualify for factoring.  Factoring companies can be the perfect solution for many Small, Medium Business Enterprises that need additional working capital to grow their business.

American Receivable is owned and managed by the original founders.  We understand the challenges and frustrations that come with owning a Small, Medium Business Enterprise.  Our Streamlined Application turns prospects into funded clients in only 2-3 days.  Call us today to find out how to get Immediate Cash for your invoices!

Jack Stieber                        972-404-4726

Brad Gurney                      800-297-6652

Dakota Stieber                  512-339-5112

Voted best Invoice Factoring Company for SMBs for 2023 by Business.com

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