Article from Risk and Insurance
Interesting summary article discussing the shortage of drivers contrasted with the increased regulation by the government.
Invoice Factoring is the perfect tool to use when:
If you are experiencing these issues, Partners Funding can help. The goal is to insure the business gets through the transitional stage by using Invoice Factoring.
Growth Example 1
A business has a significant need to grow an additional $1 million dollars in addition to the current $2 million revenue. Assume the existing accounts receivable term is 60 days; the business would need over $200,000 cash to fund operations while waiting for payments! The bank was not ready to fund the risk. If invoice factoring had been suggested and put into place, the business would have received the funds on the invoices required for growth almost immediately. The growth would have been funded internally!
Growth Example 2
A manufacturer wishes to grow from $10 million in revenue to $17 million. They have two options available:
They chose to utilize the process of Invoice Factoring due to its flexibility. The manufacturer did not want to be “stuck” with a loan that might be too much or too little. With factoring the manufacturer was able to fund the growth period internally without acquiring additional debt.