If you are like most business owners you have probably relied on the banking industry to obtain financing. However, obtaining business loans is difficult. Your business must have years of profitable operation experience in order to qualify. But what if your business is new (but growing)? Or, what if you don't qualify for a business loan but still have a great business?
You have two options, and they are not available from your bank. They are available from a factoring company. Do you have one of these two problems?
Problem: Your clients take up to 60 days or longer to pay. You need payment faster!
Waiting 60 days (or sometimes more) to get paid can be very challenging for a business owner. Especially if you halve regular expenses, such as salaries, rent and suppliers that must be paid. The solution to this challenge is to factor your slow paying invoices. Factoring (also known as invoice factoring) allows you to accelerate client payments, reducing the 60 day wait to 2 days. It's very easy to obtain and the main requirement is that you do business with good commercial or government clients.
Problem: Your client just placed a large order. You need money to pay suppliers. If you are a distributor, wholesaler or reseller, then you have a unique set of challenges. You have a supplier that need to be paid quickly and clients that want to pay slowly, leaving you trapped in the middle. The solution to this challenge is purchase order financing. Purchase order financing covers up to 100% of your supplier payments, enabling you to deliver the goods and close the sale. With Purchase Order financing you can accept big orders with confidence.
Is Factoring or Purchase Order Financing for you?
These financing products work great if you meet two very important criteria. First your profit margins must be above 10% and ideally closer to 20% (or more). Second, you must do business with reputable commercial clients or the government. If you meet these two criteria, then these products should help you grow your company and take it to the next level. Purchase Order funding and receivable factoring, are both offered by 3 Rivers Leasing and our sister company Graco Commercial Capital.
Factoring rates as low as 1.5%. Advances as high as 90%.
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(Subject to monthly volume and industry)