How Can Factoring Provide Alternative Financing for Startups?

Financing for Startups

Finding Sufficient Funding for Your Startup

financing for startups

It’s an investment to start up a business. Start-up companies need to purchase everything from equipment and insurance to office supplies and computers to get started. For many new businesses, the amount of cash in reserve is little to none. Most of the funds they had are already invested directly into the business in order to get started.

Start-up companies need working capital to fund their business to meet daily operating costs and payroll. For newer companies, this is a challenge when little to no cash is left after the initial start-up costs.

Financing for Startups

Accounts receivable financing, also known as invoice factoring,  is a common and beneficial way many companies use to finance their startups. Business loans and business lines of credit can be difficult for new companies with little-to-no financial history to secure. Accounts receivable factoring gives your startup the ability to accept new contracts while having a steady cash flow to keep up with operating costs.

Accounts Receivable Financing Process

Start-up companies no longer have to wait to get paid. Scale Funding pays companies a competitive advance on the invoice amount within 24 hours. Once your customer pays the invoice, the remaining amount is deposited directly into your bank account, minus a small factoring fee.

Learn How Invoice Factoring Helped a Start-up Cell Tower Contractor

financing for startups through invoice factoring

Financing for Startups in Many Industries

For more than 20 years, Scale Funding has financed start-up companies in a variety of industries. Start-up companies have the ability to grow by having a working capital solution.

Staffing Agencies

Staffing agencies need funds to pay their employees weekly or biweekly even when their customers are taking 15, 30 or even 45 days or more to pay them. Instead of waiting, start-up staffing agencies get paid the same day on their invoices by working with Scale Funding.

AdministrativeClericalIT – Technology
Light IndustrialMedicalMany More


Technology companies of all specialties need working capital to operate and invest. When invoices aren’t being paid in a timely manner, this makes it difficult to operate. Scale Funding provides start-up technology companies the funds they need to operate and grow.

ConsultantsData ManagementIT Services
Network AdministrationSoftware DevelopmentTechnology Solutions
Web DesignMany More

Oilfield Services

Oilfield service companies know they need working capital to operate. Allow your startup to accept new contracts by getting paid same-day on your invoices with Scale Funding.

Crude HaulersFlowback TestingFrac Sand Haulers
Gravel HaulersRig MoversRoustabouts
Water TrucksWell ServicingMany More

Heavy Construction

For companies that do heavy construction work, it’s no secret the start-up costs are high with the large and expensive equipment needed. New heavy construction companies need funds to operate. Accounts receivable factoring is a solution that many types of heavy construction companies turn to.

Concrete ContractorsCrane & Aerial Lift OperatorsEquipment Rental
Grading & ExcavatingFabrication & WeldingHeavy Hauling
Horizontal Directional DrillingTrenching ServicesMany More

Utility & Pipeline

With expensive equipment and specialized labor, it’s difficult for utility and pipeline companies to meet their daily operating expenses. Scale Funding provides start-up utility and pipeline companies with steady cash flow by funding on their invoices.

Boring & HDDFabrication & WeldingGas Utility Line Installation
Hydrostatic TestingPipeline ConstructionPipeline Maintenance
Utility ConstructionWater Main ConstructionMany More

Trucking & Freight

Trucking and freight companies need to purchase trucks before they can begin doing any work. With little-to-no working capital left, it makes it difficult to take on work when drivers need pay and trucks need fuel. Accounts receivable factoring allows start-up trucking and freight companies to fuel their trucks and pay their drivers with ease as they’re paid same-day on their invoices.

Dump TrucksDry BulkFlatbeds
Freight BrokersGeneral FreightHeavy Haul
Hot ShotReeferMany More

Renewable Energy

The renewable energy industry continues to grow and thrive. As the demand for clean energy and green energy increases, business and work opportunities for contractors grow as well. Accounts receivable financing is an excellent financing option for start-up companies in need of immediate cash.

Engineering & ProcurementSite Development ServicesConstruction Sub-contractors
Operations & MaintenanceMany More

Telecom & Wireless

With the increasing demand for telecom and wireless contractors, many start-up companies are on the horizon. Scale Funding provides working capital solutions to these companies.

Antenna Site MaintenanceCell Tower ConstructionCell Tower Repair
Data Center InstallationFiber Optic InstallationMicrowave Installation
Safety SuppliersSafety TrainersMany More

Other Industries

It doesn’t matter what industry you’re in, companies of all industries need sufficient capital to meet the operating costs of their business. Scale Funding provides cash to start-up B2B companies in a wide range of industries.

Service ProvidersWholesaleMany More

Call us at  (866) 519-3216.

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We’re ready to help you get access to the cash you need. Contact one of our 
experts to find out how Scale Funding can help your business today.