If your business is searching for a working capital solution to build inventory, add employees, make payroll, or quickly respond to new opportunities, Factoring is the most versatile cash flow solution available for small, start-up, and emerging companies.
How does Factoring work? Many business owners we speak with are unsure they understand factoring. Factoring is a simple, straightforward transaction. A Factor (lender) will purchase your invoice(s), at a slight discount to face value, advancing between 75-90% of each invoice (depending on your agreement) and settle the balance when the invoice is paid.
Small, Start-up, and Emerging Businesses often do not have the credit profile to secure the conventional financing required to fund day-to-day operations and pursue growth opportunities. If your company is frustrated by a lack of available capital, factoring can provide the necessary liquidity by effectively leveraging your customer’s credit profile.
Small Business owners sometimes express concern that customers will view a factoring facility as a sign of financial weakness. In reality it’s just the opposite, having a factoring facility in place with a sound financial institution makes your company a stronger and more dependable business partner.
Here at BLS, we can offer factoring solutions that maximize flexibility and control through both recourse and non-recourse alternatives.