How to get young businesses off the ground start-up fundingPosted by McNeill Klein on February 3rd, 2021 If you have a budding business that is on the verge of taking off but has hit a plateau due to insufficient working capital, you may be at a loss to figure out just how you will secure this additional capital. To acquire additional finance, banks need to see that you have a credit history but how can this be done when you are only in the beginning stages of building your business? Factoring is a convenient method to help you obtain this additional funding. Factoring companies will provide you with workable capital by purchasing your outstanding invoices at a discount. In essence, they buy the accounts receivable asset of your business in exchange for funds that are readily available to finance your immediate business needs. And that’s not all. Factoring companies will take over the responsibility of overseeing the accounts collection process to ensure that outstanding invoices are paid up to date. They also assess the client’s credit history to ascertain whether they are indeed in a position to pay their bill in full when the time comes and in the eventuality that a client defaults on their payment in some way, this accrued expense will be paid to you in advance until the actual payment is received. startup funding Factoring provides business funding for a startup and is not a loan in any way; it is more of a direct sales transaction. It is a purchase of your outstanding invoices at a nominal fee where funds are transferred in advance until invoices are paid in full. It involves no interest rates or other hidden fees and isn’t classified as a debt obligation on your books. If your business is showing great promise but is being inhibited by unworkable cash flow, contact Triumph Business Capital for more information on how we can help you gain the additional funding you need to grow.Like it? Share it! |