I was the owner of a small manufacturing company that supplied components to prestigious clients on a payment 30-60 days supply. I was pretty good, but always wished I had more money in hand, as I have always problems with the restoration of my daily expenses were in cash. I also realized that if I wanted to grow my business, I did not do so because the lack of adequate resources.
I first approached my bank for a loan in the hope that my problems are collected. Unfortunately, the bank requires that I owned my some collateral against the loan to be. They have also demanded the accounts of the last three years, my company, to approve the loan. I would have to pay monthly installments against the loan amount with interest for a specified period. Since my company was only a year and I use in a rented office, I had trouble with Bank requirements. So I decided to test me for other options.
I approached a couple of angel investors and venture capital. But even if they are willing to lend me the money they had always insisted that my business partners and also some of my profits in exchange for keeping the fund. It is unacceptable to me, because he could run disruptions in the way I run my business and could also be other problems in this case, I wanted off in society.
It was during a chance encounter with one of my friends in a similar situation, I discovered that a relatively simple solution to this problem. It appears that factoring companies buy business, it would be “my credit card bills and the amount of the invoice to my account within a day or two minus their factoring fee. The cost would be agreement on repayment terms that I had my clients, my client’s credibility in the eyes of the factoring company and the total amount of transactions that I could provide data for these companies. The fees may So about 1.5% to 5% of the average bill, what I felt was adequate. He would not issue securities and similar financing increase with my company, because the amount I would receive on their accounts I sold to depend on these companies.
help my friend, I contacted a company factoring company that my client list and he has agreed to fund me. All documentation has lasted about five days and it was. Everything had to do what I was, my bill to the factoring company and they amount to my bank account via the cable to send the next day. It helped cash flow, which arises to me that I immediately take care of my business expenses to promote. I also used the money to buy my products in large quantities and money, which is my cost to reactivate, so dramatically. My business started to grow accounts more quickly and I “sold” to my business of factoring, the more money I have. It was a win-win for my company.
He succeeded in my cash flow factoring companies to save the pain and helped my small business to grow in the near future, within a short time. I am happy with the factoring company who has recognized the right business for me and provided me with direct funding.