A new dirt construction company needed to start bidding on bigger jobs but was restrained by their insufficient cash flow. Balancing AR and AP was a weekly nightmare and left no room for growth. What’s more, the company was previously involved in a bankruptcy and was recently turned down for a bank loan.
One of the things I find most interesting in speaking to small business owners is that many are not aware of non-traditional funding options that are available to them. If they go to their local bank to obtain a loan and are not approved, they don’t know where to turn.

Some go to their bank’s competitors in hopes of securing a loan there; or they revert to using their own personal credit cards to finance their business. It’s a scary day when you risk personal assets for the sake of your business. Really, you should not have to go there.

Even though alternative funding options have always been available, millions of small and midsize business owners still don’t know about these opportunities.

A favorite solution offered by Bentwood Financial, invoice factoring is one of the most powerful cash flow accelerator programs available to small business owners. Some also refer to this option as accounts receivable financing or factoring.

Invoice factoring has been around for nearly 4,000 years, going back to the Mesopotamian Laws of Hammurabi, when ancient businessmen practiced early forms of commercial financing transactions.

During the nineteenth century in the US, factoring was viewed as a last resort for undercapitalized businesses, such as apparel and garment suppliers. But today, accounts receivable financing is such a powerful cash flow finance tool that it is used at every level in business, from Fortune 100 companies on down.

The definition of factoring in its purest form is “the purchase of a company’s accounts receivables at a discount for immediate cash.” There are multiple, extraordinary benefits that result from organizing your cash flow in this way, and we’ll look at them in detail in subsequent posts here.

For the sample new dirt construction company mentioned above, invoice factoring was the difference between progressing by mere survival and growing by leaps and bounds.

Bentwood Financial Group set up the process to purchase the company’s invoices, which gave them working cash within a short time. In this way, they could purchase supplies, make payroll on time, and bid on bigger jobs, thus growing the company faster than originally projected. By accessing alternative cash flow solutions as an option, this company is now cash flowing over $100,000 per month, when they were previously generating only around $10,000!

P.S. The initial transaction took three business days and it was approved in one day. After that, the company has been funded within 24 hours after they liquidate their invoices.

When you are able to meet payroll faithfully and stay up-to-date on APs, you have a margin that lets you look around and begin to build on what you have. Without that margin, everything is stress and limitation.

You’re working to make life better, right? Don’t let perceived limitations stop you. Take advantage of the many options out there.

Invoice factoring is a time-honored solution. If you’ve used invoice factoring before, please tell us about your experience in the comments. If you could use more info, contact me for a more private conversation.