| As a result of the current credit environment, finding | | | | commercial sales is having to wait 30 to 60 days to |
| the necessary business financing to grow their | | | | get paid. This also applies to government contractors |
| companies has become the full time job of many | | | | and suppliers who must also wait to get paid. Many |
| CEO's, CFO's and company owners. For example, | | | | companies would not need a business loan or venture |
| venture capital has become increasingly difficult to | | | | capital to finance their growth, if their clients paid |
| get - and understandably so. Some venture capitalists | | | | quickly. You can achieve this using accounts |
| are being extremely cautious, while others just have | | | | receivable factoring. This form of financing has a |
| their own financial problems and are not in a position | | | | number of advantages over other forms of financing. |
| to finance other companies. Other institutions are not | | | | By factoring receivables you can get working capital |
| too helpful either. For example, getting a business | | | | for your company without while minimizing the |
| loan has become increasingly more difficult, and in | | | | problems - and hassles - of waiting 30 to 60 days to |
| some instances, impossible to obtain. Many institutions | | | | get paid. |
| require audited financial statements, proof of hard | | | | Getting a receivables factoring financing line is fairly |
| assets, excellent credit among other things before | | | | simple, since the main qualification criteria is that you |
| issuing a business loan. Unfortunately, this puts | | | | do business with credit worthy clients. But more |
| business loans out of the reach of many businesses - | | | | importantly, accounts receivable factoring is dynamic, |
| especially those that don't have collateral in the | | | | and grows (almost automatically) with your sales. This |
| traditional sense of the word. There is a possible | | | | makes it an ideal solution for companies that are |
| solution though. | | | | growing and have solid prospect - but are having |
| Some businesses may be able to use accounts | | | | challenges finding a financial partner to back their |
| receivable factoring to fund their growth. One of the | | | | business. |
| biggest challenges for companies that have | | | | |