Access to capital is said to be the lifeblood of any business venture. Do you really have a viable company if you can’t finish the job after getting a contract? This can come up when we are contacted about factoring but they do not actually have invoices yet. The problem they go on to describe is a job half finished but not enough money to finish.
This is a classic example of an undercapitalized venture. Every new business must have enough capital to get started. Furthermore they need continuing ongoing funds to sustain and grow the business. Unfortunately factoring accounts receivable is not the right tool to get a start-up started from scratch. Get some customers, finish an order, then we can talk.
Depending on what your business is, you might need one or a combination of the following; borrowing from friends and family, seed or angle investment capital, credit arrangements with suppliers, SBA small business loan, or a small line of credit from a bank where the owner signs personally for the repayment.
Most of the time businesses fail due to lack of capital. Money is absolutely critical for all companies, insuring your access to it will reward you with success.