Invoice Factoring can make all the difference in your cash flow. The process is simple: we give you a line of credit using your outstanding invoices as collateral, and your loan is repaid as your clients pay those invoices. The structure is flexible – in addition to your outstanding accounts receivable, we also can consider inventory and equipment as additional collateral for the loan.
How do you know if Invoice Factoring is right for your business? Here are five reasons to consider Invoice Factoring to deliver big benefits for your small business.
#1 – You’re a small or growing business selling to large, established customers.
This is quite an accomplishment – and something to be proud of. However, this kind of success can put you in the precarious position of taking on longer payment terms and larger orders, which often creates cash flow hurdles that limit your growth.
If your small business is also a relatively new business, your financial institution may not be impressed by your recent success. Banks often want to see a solid track record – meaning at least two years of profitability – before they will get serious about doing business with you.
Summit Financial Resources understands that many young businesses have reliable customers and predictable cash flow. Our goal is to help companies like yours solve their operational hurdles by ensuring you have a steady stream of cash on hand to finance growth. Even if you are brand new or selling a new product, if you have contracts with reputable customers, we’re here to help.
We think of ourselves as a “makes sense” company. Regardless of how far outside the box it is, if a deal makes sense – we’ll do it.
#2 – You’re an entrepreneur who likes to run your business your way.
Entrepreneurs respect the opinions of others, but they believe in themselves and in doing things their way. This quality may be the key to your success, but it can make working with traditional financial institutions a challenge. Business owners who do things their banks don’t approve of can seriously jeopardize their relationship – and their financing.
Summit Financial Resources is not a bank. We can be more creative, take more risks, and structure more flexible deals. Because we measure our success through your success, we focus on keeping sufficient working capital on hand so you’re free to focus on your business – not on your bank account.
With options like Invoice Factoring, funding decisions are made quickly and on a case-by-case basis. We create custom solutions that are right for your business, ensuring that you’ll have the cash you need to run it as you see fit.
#3 – You need working capital – yesterday.
Getting access to small business financing is a crucial aspect of running a small business. Every business encounters occasional cash flow problems. For many small businesses, fluctuations in income, supply costs, and market conditions can result in inconsistent cash flow. When working capital is tight, it can slow down your business.
Whether you are in manufacturing, transportation, distribution, or professional services, Invoice Factoring can be a key part of your ongoing cash flow strategy. Summit Financial Resources can assess your business quickly and loan up to 90% against your invoices. This simple strategy will get you fast cash to pay suppliers, take on new orders, fund payroll, or jump on new business opportunities that come your way.
#4 – You have latent cash sitting in your A/R.
You have a steady stream of business, but your customers are slow to pay their bills. Unpaid invoices are accumulating, and at times you have more money in your accounts receivable than in the bank.
Invoice Factoring empowers you to put your latent cash to work. We give you a line of credit using your outstanding invoices as collateral, and your loan is repaid as your clients pay those invoices. In the meantime, you can harness the cash in your unpaid invoices to smooth out your cash flow – and keep your business humming.
#5 – You can’t get your bank’s attention.
Your small business may not be a priority for your large bank. But to a smaller firm like Summit Financial Resources, your small business is a big deal. We provide cash flow solutions to companies who need a financing structure that cannot be provided by banks or other commercial finance sources.
When banks are unable to help, we can often get capital from your accounts receivable, inventory, and equipment to expand your cash flow. To do this, we get to know you, your business, and your customers. And since we’re all about building long-term relationships with our clients, you’ll get to know us, too.
We’re collateral-focused, so we aren’t fazed by the kind of things that are going to turn off a bank, like the length of time you’ve been in business or credit issues. Invoice Factoring is based on cash flow and customer creditworthiness, so what we care about most is if you are providing great service to great customers who are paying you. If that’s the case, your business is a perfect fit.
Summit Financial Resources specializes in working capital financing for small to medium-sized businesses that need increased cash flow. We provide working capital financing through invoice factoring, asset-based lending, inventory lending, and equipment financing.