Often when a company has a term loan or bank line of credit, the bank will place a blanket UCC filing on all company assets. The finance company will require a first position on the accounts receivable, so your bank will need to take a second position on the receivables.
Many bankers are willing to work together with another finance company in order to help a client grow. As the company grows, the bank loan becomes more secure and can often be paid off sooner with additional funding.
Consider this example: You have $100,000 of receivables on your books and $15,000 cash in the bank. You receive a purchase order and need $30,000 to fulfill the order and earn a 20% profit margin. Since you are short $15,000, you lose the order because you cannot pay the vendor. If you had a receivable credit line, you could convert some of your outstanding invoices into $15,000 to fulfill the order. The cost may have been 4%, still resulting in a 16% profit margin and a satisfied customer.
In addition, lack of personal credit or poor personal credit will not disqualify you for this type of funding.
American Funding Solutions specializes in providing invoice factoring helping small businesses nation-wide.
There simply isn’t an easier factoring company to work with your business.
We make the factoring process simply & easy for our clients!
Kansas City (816) 224-6201
Fax (714) 384-7561
American Funding Solutions
601 NW Jefferson Street Suite #7
Blue Springs, MO 64014, USA