Plenty is what a factoring company wants to hear. Whenever a factor is looking at a potential deal they like to see the owners of the company completely invested in its business. It is always great to see an entire company loaded with staff and assets that took a lot of hard work to bring together. Factoring companies need to feel comfortable that their client will survive through grit and determination when things are not going according to plan.
A company where there isn’t much to show for it, is easy to spot and scary to fund. The first sign of trouble, the owners bail and start up a new company with a new name leaving their investors and lenders high and dry. It’s not only running from a failed company, there are also fraud issues that are associated with clients who don’t have much of their time and money involved in the enterprise. Factors like to know that stealing an invoice is too small a reward for the owners to think it is worth chucking it all to bring down the business through malfeasance.
It’s not only lenders. Organizations and agencies who are thinking to hire a company want to see that the business is strong enough to persevere when the going is tough. What kind of resources will they be able to pull upon to keep a contract under control and completed safely. There is a strong emphasis on verifying financial strength when a contract award is being considered.
In all occasions, including talking with a factoring company, make sure to emphasize the tremendous amount of tears, sweat and resources that have gone into your endeavor. Give anyone considering working with you the confidence that you have too much to lose in messing it all up.