Working Capital Factoring / Smart Capital Advance

Transaction Size:

Processing Time: Monies can be in your account within 24 to 48 hours

Working Capital is the lifeblood of most small businesses and it is our experience that many business owners are not aware of the many ways in which they can easily access working capital. Yet scores of fiscally prudent companies use Working Capital Factoring as an effective tool to make available capital on the books as accounts receivables. We help you convert account receivables to working capital. Our Working Capital Factoring program liberates money tied up in your invoices.

Working Capital Factoring (also known as AR Factoring) is the purchase of some or all of the valid accounts receivables for goods and services that have been completed in business to business, or business to government transactions, at a discount. Working Capital Factoring or Account Receivable Factoring is accessible to all types of business ranging from start-ups to growth stage business to mature business and are used by companies of all sizes. There is no “years in business” requirement and the proceeds may be used for almost any legitimate business purpose.

Access to working capital provides the ability to support and grow a healthy cash flow for your business.

Types of Working Capital Loans

Micro Loans – These are working capital loans typically funded from $5,000 to $35,000 and used for any business purpose. These are reasonably fast decision loans. They are backed by the SBA. The lender will look at the viability of your business and your personal credit when approving a working capital micro loan.

Credit Card Receipt Advances – A cash advance loan up to a $100,000 that is secured against your regular occurring monthly merchant credit receipts. The loan is paid back via automatic deduction from future credit card transactions. There are many small business lenders that will purchase future credit card receipts and give you working capital.

Sell Account Receivables – Your account receivables are purchased at a small discount and you get working capital.

Business Credit Cards – These loans are unsecured and usually do not exceed $25,000. Loan limits are based on your personal credit score and not your time in business. There are various kinds of business credit card. Some cards can provide working capital in the form of cash advances. And others help protect cash reserves because you can use them in place of using your available working.

Sale and Leaseback – Sale of an asset for cash, with a contract to lease the asset back from the funding source purchasing the asset. Sales tax can be an issue here with this type of funding. Your business sells your equipment to the lender for cash, you then lease the equipment back from the lender for a monthly payment. At the end of the lease your business owns the equipment.