FACTORING QUESTIONS

Why Use Factoring?

For more than 20 years, Scale Funding has provided reliable cash flow to companies through accounts receivable factoring. We focus on delivering quick cash and exceptional customer service, while you focus on what you’re good at – running your business.

Businesses choose to factor for a variety of reasons, but there’s one thing they all have in common – they need working capital and they need it quick. No matter what your situation or what stage your business is in, accounts receivable factoring can be a dependable cash- flow solution for your business.

How Can Companies Benefit From Factoring?

Factoring Provides Reliable Cash Flow

The availability of consistent, manageable cash flow is critical to operating a successful company. Without a reliable source of cash flow, many companies struggle to meet daily financial needs. Accounts receivable factoring is an effective financing solution for improving cash flow. By using factoring and the steady cash flow it supplies, companies can meet their daily need for cash and use the money to grow into a strong, successful company.

Expansion & Growth

Companies in expansion and growth stages need working capital. Hiring more employees? Purchasing equipment? Factoring provides companies in expansion and growth mode the working capital they need. The amount of available capital will grow as they grow, giving them endless opportunities for expansion.

Maxed-Out Lines of Credit

A maxed-out line of credit will bring your cash flow to a halt. Even when you have good credit, banks will put a limit to the amount you’re able to obtain, which puts a cap on the growth your business can have. With factoring, you’re only limited by the size of your accounts receivable base; as you add new contracts and customers, more working capital is available.

Slow-Paying Customers

In some industries, slow-paying customers are common. It’s hard managing cash flow when customers take 30, 60 or even 90 days to pay. Even with an MSA in place that spells out payment terms, some customers will routinely pay when it works best from them, not for the company doing the work. Invoice factoring offers instant access to cash. Payment for the work you do will be received within 24 hours.

Start-Ups

Start-ups and emerging businesses need working capital to survive. Many businesses start with little-to-no cash to fall back on. Accounts receivable factoring can provide start-ups with the capital they need to not only run day-to-day but the ability to grow as the company grows.

Bank Turn-Downs

Bank turn-downs of an application for a business loan are frustrating and potentially fatal for a business. An accounts receivable factoring line can be easier and faster to obtain. Scale Funding can offer a quote for a factoring line in 15 minutes. For many companies, the need for cash is immediate. That’s why when the bank says no, we say yes.

Less-Than-Perfect Credit

Businesses with less-than-perfect credit can have trouble getting business loans and lines of credit. And even if they are able to get one, many times the amount available is not enough for the business to survive. Factoring doesn’t look at the creditworthiness of your business, but rather the creditworthiness of your customers. At Scale Funding, we understand companies go through hard times when their customers don’t pay promptly. That’s where factoring comes in. It provides the cash you need to effectively operate your business.

Tax Problems

Tax problems or liens filed against a business present a challenge when it comes to financing and cash flow. Banks are very reluctant to lend to a business that has a tax lien. Scale Funding has extensive experience working with government agencies to set up plans to resolve tax liens. Accounts receivable factoring with Scale Funding will provide the cash flow needed to continue operating and growing the business while solving tax lien situations.

Bank Work-Outs

When the risk starts to increase, many banks pull away. Companies that are suddenly in a bank work-out situation run into a cash-flow crunch as they no longer have access to funds needed to run their daily operations. Scale Funding works together with prospective clients and their banks to complete a smooth and quick transition to factoring. The transition to factoring allows the company to continue with steady cash flow and enables the bank to maintain the other accounts and services in the relationship with the client.

Bankruptcy

When a company is working through a bankruptcy reorganization, banks won’t take on the risk to give a company the working capital they need to survive. Accounts receivable factoring is an ideal source of post-petition financing. With factoring, we look at the risk of your customers. If they are creditworthy, we’ll provide you with the funds you need to get your business back on track as quickly as possible.