While there is no doubt that over half of all jobs in the United States economy are created by small businesses, finding funding from traditional lenders to expand a company is a challenge.
Banks, financial institutions and even the Small Business Association have complicated applications and focus on the net worth of the business as well as guarantees by the business owner or owners. For startups and small businesses, this can make being approved for these types of funding options an uphill battle with limited chance of success.
These same institutions are just not set up to actually help the small business. They don’t offer the organizational and structural services that are compatible with small businesses, and they certainly don’t provide the right accounts receivable software.
The Challenge
The FDIC (Federal Deposit Insurance Corporation) reports the percentage of loans to commercial business and industries with a balance of less than $250,000 has declined from 20% of total dollars borrowed in 2004 to 13% in the second quarter of 2014.
In addition, a recent study reports that 75% of all small businesses seeking funding through traditional sources need to borrow less than $50,000, something that traditional lenders are not designed to handle. To make matters even more concerning, the 2014 Wells Fargo-Gallup Small Business Index reported only 32% of small business owners reported that obtaining credit was easy, at least through traditional lending institutions.
The Factoring Industry Solution
This is where our services in the factoring industry can benefit small businesses of all sizes. Everything -is small business friendly, the state of the art accounts receivable software including the collection of accounts receivables, we can provide the back-office support and services you need.
The challenges faced by lending institutions are not challenges faced by factoring firms. Businesses with accounts receivables as low as $20,000 can access the funding options provided by the factoring industry, taking the paperwork, stress and application challenges right out of the picture.
Using accounts receivable software provided by our experienced and specialized factoring company removes all the issues inherent in dealing with traditional banking institutes. With our software, you can access accounts, obtain real time credit and financial information, and make the best decisions about your factored accounts right from the comfort of your home or business computer.
