Small Business Factoring

Instant Funding for Small Businesses

Anyone who has started a small business has likely experienced a shortage of cash flow at some point in time.  It’s nothing to be embarrassed about….we can all use some help from time-to-time.  The biggest contributor to a shortage of cash is our client’s payment habits.  Most companies establish their payment terms up front….but client compliance with those terms is often beyond our control.

It’s sort of ironic that the ability to take on new business is directly related to the money that we are owed for services already rendered.  At this time, we may have to pass on new and profitable business because we can’t pay our own vendors for work that they have already completed.  What’s worse is that those vendors can issue negative credit reports to the bureau.

 

Getting Out of a Financial Jam through Factoring

Thankfully, there are ways to avoid these roadblocks that will allow your company to flourish without worrying about upsetting vendors and refusing new business.  Financial factoring has been around for centuries and has helped many companies gain the footing that they need by a cash advance to them based on their receivables.  The benefits of factoring are:

  • The factor will purchase your account receivables for a high percentage of the invoice amounts.
  • The factor will take on the responsibility of collecting your outstandings for a small fee while advancing immediate cash to you.
  • Once the factor has collected your receivables, the remaining balance…after the advanced amount and the discount fees are accounted for…is returned to you.

In a nutshell, a small business receivables amount of $10,000.00 could be advanced to you, collected by your factor within 30 days and settled with you for as little as $150.00 in fees.

 

Small Business Financial Solutions

K-1 has been assisting small businesses in times of financial need for years.  The process is easy and we perform credit checks on your customers which are transferred to you for future consideration.  Almost all small businesses qualify for our factoring services as you continue to grow your business.

Contact us for more information and eliminate the worry and angst of collecting debt for services already provided.  It’s easier than you think.