Alternate Business FundingFactoring is not limited to any particular industry or business model. It has become the alternate business funding source of choice. As long as a business creates invoices and offers terms (…30, 60, 90, etc, days for payment), factoring can work. Such business include manufacturers, security guard companies, temporary work agencies, landscaping businesses...literally any company that have accounts receivables and requires business start up funding, alternate business funding and startup business funding. Probably at the top of the list of those companies and firms most in need of factoring are those with government contracts. Many businesses find that getting government contracts are great. However, there is a price – and that price is: governments, whether local state or Federal, are notoriously slow at paying on their contracts. Experience tells us that it does not matter the level of government, they all make good on paying their debts. However, many businesses awarded small government contracts (city, state, or Federal) do not have the ready capital to maintain their companies in order for them to complete the job. It has been many a businessman’s experience that all levels of government are SLOW at making their payments. In essence, though they may have delivered on the contract, they may not see any payment from the government for 60, 90 or even 120 days or more. This causes great interruption in the contract winner’s cash flow. Many of these companies have very little capital reserves. Therefore, having their capital tied up in government accounts receivable can doom their businesses. They find that they need alternate business finding. This is where factoring may be able to help. This same scenario plays out daily across the country in every conceivable industry and business sector. Companies win contracts – whether temporary employment agencies, manufacturers, distributors, freight companies, landscapers, security agencies, janitorial services, etc. – everyday. It does not matter if the business is a start-up or an established, high-growth company, if it is under-capitalized and does not have strong, consistent cash flow, it will have problems fulfilling the awarded contract. Factoring is a must for these companies as a valuable source of alternate business funding.
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