Solution by Industry
An Alternative way to Access Asset Based Lending, Working Capital, and Small Business Lines of Credits
As companies face a constricted credit market, along with lower expected results, many small business owners are opting for asset-based lending as a viable option of financing. Even successful companies that hold strong banking relations can fall into unexpected cash-flow challenges. In these situations, asset-based lending is the arrangement that bridges the loans to pay out banks and provides flexible financing options. An asset-based loan is secured by a company’s accounts receivables, inventory or equipment, whereby the lender takes a first-priority security interest in those assets financed.
Capital Partners’ industry factoring experts are here to answer your questions about how factoring and accounts receivable financing will help your business grow. Capital Partners’ provides your business the solutions you need fast. Our factoring by industry experts are at your service. Call us today!
Factoring by Industry
In recent years, the most common forms of asset-based lending have been the utilization of a company’s accounts receivables and invoices. These assets typically have an easily determined value and provide instance cash flow and working capital. They are also the best alternative financing solutions to pay for ordinary day-to-day expenses, buy more equipment or inventory, issue credit terms to new creditworthy customers, and spend more time building your business and less time collecting money. No matter the industry, Capital Partners has a solution for you and your specific industry. Our factoring by industry solutions provide cash fast.
How to Use Invoice Financing for Cash Flow
Invoice financing and receivable factoring is a financial solution that is commonly used by many businesses that sell their products and services on open terms.
Companies facing a cash-flow squeeze and slow-paying customers often sell their invoices or accounts receivable. The lender advances most of the invoice amount — usually up to 90% — after checking out the creditworthiness of the billed customer. When the bill is paid, the lender remits the balance, minus a transaction (or financing) fee. This type of factoring by industry allows businesses of all types to take advantage of invoice financing.
Factoring Services by Industry
Companies that use invoice factoring benefit because they get money quickly rather than waiting the usual 30 or 60 days for payment. After sending an invoice to a factoring company, a business can have money in hand within 24 to 48 hours. Some businesses use factoring to get started. Whereas banks focus on a business’ creditworthiness in considering whether to make a loan, factors look at the financial soundness of a business’ customers. As a result, firms with scant credit history may be able to sell their invoices.
Accounts receivable financing or invoice factoring is a way to fill the gap between when a company invoices its customers and when it receives payment for its services.
Factoring Services by Industry: Let Our Experts Help You!
We serve a nationwide client base of manufacturers, wholesalers, Oil and Gas, service providers, staffing services, start ups, distributors, technology services, printers, and transportation, amongst others. Our clients come in all shapes, sizes, sectors and industries.
If you think your bank can no longer handle your financing or cash flow needs, you do have other options. Contact us for a free, no-obligation business analysis and consultation today.