![]() Government contracting & defense companiesĬonstruction and building companies, including contractors, suppliers, and subcontractors Telecommunications and technology companies Transportation companies including trucking, freight, rail, and others ![]() Warehousing, distribution, and wholesaling firms Oil, gas and energy firms, including renewable energyīusiness service companies, including accounting firms, law firms, business consultants, staffing firms, marketing, and advertising agencies, etc. Manufacturing, including apparel & textiles, toys, furnishings, electronics, luxury and non-luxury goods, Consider the following, non-comprehensive list of small businesses that could benefit from factoring services: What types of industries can take advantage of factoring for small business? Most B2B firms qualify as do some business to consumer (B2C) enterprises. So if you are a small business that provides a service or sells a product to a large corporation, you are likely a candidate for small business factoring. That is because the factoring company uses the credit assigned to your client as its determining criteria. ![]() Factoring for small business often eliminates the need to apply for a loan.īusiness to business (B2B) firms, in particular, is ideal for small business invoice factoring. By selling your receivables or invoices to a small business factoring company for a discount, usually for 8-20 percent of the value of the invoices, your business can collect on its invoice in days. Invoice factoring for small business, on the other hand, is an alternative financing option that has a simple application process that does not require a good credit score or taking on any debt. Lastly, loans require taking on debt that can prove costly and difficult over time.įactoring for small business can strengthen your cash flow Many startups or rapid growth businesses simply don’t have the time to wait for a loan. In addition to being difficult to obtain, the application for business loans is slow and time consuming. Yet business loans are not easy to obtain, especially for new, early-stage firms without a proven business history. Factoring for Small Business: Your competitive advantageīusiness loans are generally the first option companies think about when it comes to obtaining money for their growing firm.
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