Is Factoring an Option for Small Business

Cash Flow Factoring is all about improving cash flow. Factoring companies often hear the most amazing stories about businesses that have had success improving improving cash flow. Today I received a phone call from a small company that’s been in business for 14 years and experiencing some real opportunity for growth. The family business was just handed down to the second generation—to a young man with lots of energy and plans to grow.

The new business owner began contacting factoring companies and stumbled on Interstate Capital during an internet search. The business owner started telling me about the history of his business-how his father had started the company and was satisfied staying small. When the son took over the business, he saw lots of opportunities his father overlooked or simply was not interested in pursuing due to his advanced age.

Cash Flow Factoring Success

This company sells and services fire extinguishers. While everything was on an even keel, cash flow was not so much of a problem. They collect their accounts receivable in about 60 days. When the son took over the business, he began marketing their services more aggressively and before he knew it, he had customers lined up, but no ability to obtain fire extinguishers from his supplier, because he was constantly waiting to collect his receivables.

Factoring accounts receivables, he figured, would allow him to buy more fire extinguishers for resale and increase both his revenues and gross profit.

This business owner informed me that whenever he’d get a new customer, he would have to keep contacting the customer to inform him that the fire extinguishers were on back order. In reality, his cash was on back order. Cash Flow Factoring can assist small businesses free up that cash to acquire inventory and increase sales. If your cash is on back order (tied up in accounts receivable), you may consider contacting a factoring company like Interstate Capital to get a factoring quote. They are in the business of buying invoices and can help you get your cash flow "flowing".

Applying for Cash Flow Factoring

You can apply online for cash flow factoring from Interstate Capital and get an instant approval within an hour. In addition to providing far greater availability against your accounts receivable than what banks would provide, Interstate Capital also acts as your credit department, assisting you to establish prudent credit limits for your customers.

We provide 24-7 online access for credit inquiries and instant approval on tens of thousands of companies.

Collections Department Reduces the Stress From Cash Flow Delays

In addition to providing cash flow factoring services, Interstate Capital provides another time and money saving service. We are referring to a business collection department. Automated statements are sent to your clients to assist them in paying you more quickly. We also make follow-up calls to obtain payment status and speed up the process.

In short, Interstate Capital advances more money, helps you to reduce credit losses, and save you time and money by collecting your payments for you with cash flow factoring related services.

Interstate Capital’s factoring programs include a long list of unique features including rates starting at just 0.49% per invoice, advance rates up to 100%, same-day funding, 24/7 automatic credit approvals, fuel advances (for motor carriers), professional collections, and much more.

Set-up is always fast and easy. There is no application fee and most companies will qualify for an instant online proposal in under 2 minutes just by completing the Instant Factoring form on this page. If you like what you see in your proposal, just click on the application link in your proposal and you’re on your way to fast funding.

Today, the Interstate Capital group of companies employs more than 85 dedicated professionals, and has successfully funded over 6,000 motor carriers, freight brokers, manufacturers, staffing services, oilfield service, and other service businesses for over 20 years.

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