Rejection
Your Request For Financing Has Been...
"Rejected -- Refused -- Denied -- Reduced"
Are these all too common answers in your
quest for credit?
Are you spending more time trying to
finance the growth of your business than you dedicate to actually growing the business?
Has your bank manager changed....along with
the relationship?
Regardless
of how they say it, those are painful words for a visionary company. They are the words
that effectively puts growth on hold, and reduces confidence.
They are also the words that force business people to spend hundreds of wasted hours each
year attempting to negotiate loans or increased lines of credit in order to finance growth
opportunities.
The amount of time you spend
prospecting for finance is not proportional to the amount of financing you receive.
Undercapitalization is a problem
facing more and more small businesses. Bankers are increasingly looking favourable only on
what they call "vanilla" accounts. These are the no-surprise businesses with
proven track records, three to five years profitability, and lots of collateral, security,
and experience.
Like an operating line of credit,
factoring uses a company's accounts receivable. The main difference, however, is that
while a bank or trust company grants loans based on a percentage of accounts receivable, a
factoring firm actually buys some or all of those accounts. It pays full value for them.
Businesses with great potential
but powerless at the bank are likely to be helped most by factoring. However, even if you
have been successful at the bank, your problems may not be over. If you routinely turn
down large orders because your operating loan isn't sufficient to cover payment to
suppliers, you may be sacrificing the growth necessary to keep your business healthy.
Factoring can give you the latitude not just to sustain your business but to speed it's
growth.
A factoring company could add to
your credibility by reassuring clients who may be skeptical about the professionalism and
commitment of your management. Or, if you're tired of semi-annual trips to the bank to
negotiate a small increase in the amount of your loan, or of the anxiety of potentially
having your loan called on short notice, you may also find factoring a welcome relief.
If you are tired of having your
business stalled by the inability of traditional money lenders to provide the money to
help your growth, then call Fleet Street at 416-929-9272, or send an .
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