The economy is officially doing better. Not on fire, but many a businessman/woman I've talked with lately have noted that they've had their "best years ever". Now there is always a good amount of hyperbole in people's ranking of their own profits, but its true, times are better than the past few years.
One thing helping small businesses specifically, is the amount of financial tools available for the small, medium, and big business. Now I am not going to write about the big business financing out there. If you are a big time businessman you shouldn't be reading this blog. But for you small to mid-sized businesses there are some great products available to you.
Invoice Factoring from companies like Merchant Bridge Finance are one way businesses are getting the expansion and operating capital they need to prosper today. So what the heck is invoice factoring. Well unless you are a finance major, you may not have heard of this tool. Basically, if you are a business that issues invoices to your customers (account debtor) then invoice factoring may be for you.
Let's say your client has a 90 day turn on their accounts payable and you have a chance for a job that will require more capital than you have available. You could tap a business line, if you have one. Or you can sell your invoices for cash today. A typical factor can provide an advance on that invoice of between 70-95% and will charge anywhere from 1-5% of the face value of that invoice. The terms vary widely between factor, industry and based on the strength of your client. Your credit and financial stability is important but not the over-ridding underwriting concern to be sure.
This product is great in industries like transportation, energy (oil & gas), textiles and apparel, temporary staffing and many others.
If you are interested in this service reach out to me and I will connect you with a factor who has a specialty in your industry.
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