Distribution can be complex, and it takes a sophisticated lender to provide the right kind of financing. Summit Financial Resources can help you with a line of credit that will significantly improve your cash flow. With more cash on hand, you can expand operations, capture market share, or simply keep pace with normal day-to-day expenses.
If you have a steady stream of business and you’re selling to reliable customers, then cash flow may not be an issue. But there are times when even the most steadfast customers can be slow to pay. If your unpaid invoices are accumulating and you have more money in your accounts receivable than in the bank, it’s time to consider your financing options.
Harnessing the Power of Latent Cash
We make sure you have the best opportunity to improve cash flow with invoice factoring, asset-based lending, and/or inventory financing. These programs allow you to harness the cash in your accounts receivable and get funds before your customers have made payment. The Invoice Factoring process is simple: we give you a line of credit using your outstanding invoices as collateral, and your loan is repaid as your customers pay those invoices.
The structure is flexible, and, in addition to your outstanding accounts receivable, we can consider inventory as collateral for the loan. With our inventory financing add-on program, you pay us back when the inventory is sold through the use of our Invoice Factoring program. For wholesalers who have the next few months’ worth of orders in the warehouse but not a lot of cash on hand to replenish their supply, it provides a reliable source of capital to help buy additional inventory to fill future orders.
Making Smart Moves
Whether you’re buying locally or from overseas, the key to a successful relationship with us and with your customers is making smart buying decisions that allow you to keep your inventory turning. Our ideal client looks beyond the latest trend or fad and purchases stable product they can capitalize on by buying it in large quantities and moving it quickly.
A word to the wise: make sure you’re doing business with reputable companies like Target and Walmart. In today’s business environment, it’s risky to take chances on debtors who may not be able to pay you. Remember that you’re only as efficient as the cash you have in hand; the more you have, the greater your purchasing power.
Banking on Your Success
Summit Financial Resources can be of service when your bank is unable to help. We’re collateral-focused, which means we aren’t fazed by the kind of things that are going to turn off a bank, like credit issues or how long you’ve been in business. Asset-based lending is tied to cash flow and customer creditworthiness, so what we care about is that your inventory is moving and your customers are paying you.
Our approach to financing enables us to look beyond your company’s current circumstances and find value in the investments you make in the course of doing business. Recently we helped a wholesaler of specialty apparel who experienced a major disruption in their business when their previous lender stopped funding its largest customer. The company was forced to self-finance the customer and struggled to maintain its key vendor relationship, creating significant uncertainty.
We structured a credit line that funded the major customer and more, providing a greater amount of working capital for this growing business. With vastly improved vendor support, the ability to execute on higher sales volumes and a reliable credit facility in place, the company can now take on much larger orders from a more diversified customer base and continue to grow. Summit Financial Resources’ credit facility has been a major boost for this company, resulting in far more availability and a fresh outlook on the business.
Asset-Based Lending is a few clicks away.
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.