Do You Have An Alternative If Your
Lender Becomes Uncomfortable With Your Credit?
by Keith Mabe - Charter Capital
Read this Entrepreneur Magazine
article first (click here).
Unfortunately, Tara Olson's story is not unique. Banks will
often drop your line of credit if it does not meet certain
profitability requirements. This, of course, can leave your
business scrambling for cash if you are dependant on bank financing
or a line of credit to help buffer your cash flow.
The Importance of Cash Flow
As with most
businesses, cash flow is critical to ensure funds are available to meet
your operating needs. Without effective cash flow management, a business
faces several problem areas, such as cash shortages, inability to pay
bills, bankruptcy, or even business failure.
Cash flow is one of the most vital elements in the
survival of a business, and it shows where a company may be headed. Instead
of depending on traditional bank financing, you can more easily manage your cash flow with
TruckingFactor.com. When you can predict or even
control your cash flow, you are in a much better position for continued
The Difference Factoring Makes
An increasingly popular way to help manage cash flow is factoring.
Factoring (also known as Accounts Receivable Financing)
is the practice of selling your accounts receivable (invoices) at a
discount to another company like TruckingFactor.com. You immediately
get the money from TruckingFactor.com and we become responsible for
collecting on the invoices.
With factoring, you are free from many of the restrictions placed
upon your business by traditional bank financing. Most importantly,
with factoring, you are free to grow without having to give up
equity or control of your business. This is
because factoring your Accounts Receivable is technically the sale
of an asset, and the funding you receive from us is not debt, but a
In today's competitive marketplace, getting
debt-free funding in the form of factoring can give businesses the
edge they need to succeed.
Freight Factoring & Small Business News from TruckingFactor.com