As a small business, it is critically important that you have the necessary access to capital to work on a contract. Your customer will be aware if the inability to finish the work is related to a lack of funding.
This is why it is a smart idea to put together a business financing strategy before you close a sale on a new contract.
Of course small contracting firms experience a little bit of a catch-22 when they think about going to the bank for a loan. They cannot show historical revenue that matches the great expectations around the corner.
Here is where invoice factoring can me a tremendous tool to get from point A up to point C,D and E. There are three main benefits to consider about factoring receivables; Often misunderstood and more commonly unheard of, invoice factoring can be just the mechanism you need to build a company with additional employees. At the end of the day, after using factoring for a while, you will be able to transition to an more traditional business loan that will mark the ongoing success of your company.
Gary Honig
Company: Creative Capital Associates Factoring Co.
November 10th, 2011