Invoice Factoring US

Financing Your Business… Get the Money before the Economy Tanks

With Global markets being so volatile and our own US equity markets taking large swings, one has to ask if our economy will remain stable as well. The answer, of course, is no.  There are business cycles and they have an average cycle of 7-10 years in the US.  The US has had a long up swing on the current cycle. To think the economy will keep rising is not realistic. Where can go for financing, invoice factoring, or banks or maybe none as credit gets tighter and it becomes harder to qualify.  The last people that thought our economy could stay strong forever found a tech bubble that burst and a real-estate market that melted down…. 

As business owners, we need to secure capital and lines of credit when we do NOT need them.  Entrepreneurs often get tunnel vision and focus only on sales; however, when they hit their targets, they are often scrambling for capital.  Why not work on both sales and capital sources at the same time.  To work on one or the other is to error, a good entrepreneur needs to be working on both at all the time. Invoice factoring financing is a very practical method and simple way to raise working capital quickly.

Many companies in the major cities like Los Angeles, New York, Chicago, San Francisco, Houston know about financing sources like AR financing companies, but many of the smaller cities like Atlanta, Cleveland, Oakland, Baltimore, San Antonio, and many other cities do not have invoice factoring companies.

Financing is the vital life line to a business at any stage because growth does not work on profit, it works on cash flow.  Many business owners are so consumed with day to day operations that they often forget that financing and capital will limit their ability to take on new customers at some point.  One can never have enough reserves for a rainy day.  Even larger corporations with billions of dollars in sales are financing their invoices factoring transactions to increase their liquidity.  Companies large or small typically have to provide their customers with terms of 30 or 60 days to pay their bills as this is typical in the US market.  There is no need to finance the sales to your customers, just sell their invoices and use the new cash flow to either purchase new inventory or take care of growing payroll needs.

Stephen Perl, CEO 

PMF Bancorp

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