Small Business
Finance Solutions

Accounts Factoring
The most powerful financing tool available to today's small business entrepreneurs
 

Purchase Order Finance
Financing the production of goods for subsequent delivery to large retailers

Asset-Based Lending
Loans provided to creditworthy clients against invoices, inventory, & equipment

What is Factoring?
Without question, factoring is the most powerful financial tool available to small business owners and entrepreneurs.  It directly provides solutions to the problems of cash flow caused by granting 30-60 day payment terms to your customers.

Unlike a typical bank loan, factors actually purchase the invoices of a business as they are created.  The initial advance on purchases is typically 80% of face amount and is wired directly into the seller's bank account at time of purchase.  Once purchased, the factor waits to receive payment from the customer and then "rebates" the 20% balance after deducting a small "factoring fee".  Factoring fees have dropped dramatically over the years with a typical 30 day rate now about the same as a credit card discount.

Unlike most traditional lending, factoring is available to even the newest businesses with little or no credit history.  This makes factoring the perfect choice for entrepreneurs starting new service related companies such as:

•  Staffing Companies
•  Guard Services
•  Landscaping Companies
•  Janitorial Services

Almost no industry is untouched by today's factors, however.  Financing in some industries, such as trucking and freight bill finance, has literally been taken over by factors.

With its extensive factoring relationships, Sarasota Factors can assist you in finding just the right factor for your small company or entrepreneurial enterprise.  Want to find out more?  Request our FREE booklet, When Banks Say NO!...the Small Business Guide to Factoring.  Its FREE...from Sarasota Factors..
 

SOME FACTORING BASICS
Factoring is the most accessible financial tool for small business and especially startups.  It is routinely used by...

•  Disadvantaged Businesses
•  Minority Businesses
•  Woman-Owned Businesses
•  Veteran-Owned Businesses

Factoring allows under-capitalized companies to seek out lucrative contracts with large companies, even though such customers routinely pay invoices slowly.  Factoring frees up capital "trapped" in invoices which can then be used to fund..

•  Payroll
•  941 Tax Payments
•  Inventory
•  Equipment

Most importantly, with a factoring arrangement in place, small businesses owners with even brand new companies can seek out lucrative contracts with large, creditworthy customers without fear of running out of capital.