Working Capital Fund, Do You Have the Time to Get One?
In so many cases a business owner is often out their getting the business. They are the revenue generators. The go-getters. So asking a business owner to fill out tons of paperwork is like stopping the business for 1-2 weeks, each year.
Getting a working capital fund from a bank or factor requires a huge amount of paperwork and meetings and often, you need 3-4 banks/ factors in play so that you can improve your odds. It takes a ton of time and often, the answer that will come back is, sorry, but we can’t help you. Like that sorry really helps. This response usually takes about 3-4 months and often, a substantial non returnable initiation fee is already paid along with a large fee from your accountant for preparing the reviewed financials.
In the case of factoring, the factors will call your clients to verify your receivable amount and if they are legitimate. If your client has a poor credit rating, the receivable factor will not fund that client and you are back were you started. Combine this along with your client worried about your viability because of the factors call in the first place, you might have just worried your client enough that they will give more business to your competition.
With no working capital fund to help you when your business does well or when there is a problem, you run the risk of wasting more time when cash flow problems due come up.
Enter a new type of fund for working capital. Payroll Financing funds money to companies when companies need a fast decision with very little paperwork involved. The fund is often a short term solution to help a company when they have an unforeseen expense allowing your company to get things under control or to arrange for other working capital funds. The fund can be paid back at any time with no penalties and often, if you need the fund again, the money will be there for you when you need it.
Financing Solutions provides fast, short term business funds due to an unexpected expense or large increase in sales. FS is a private company that does not have the same regulatory restrictions as banks or factors. If interested in having a conversation with one of our partners about your business, please call 862-207-4118 x502.