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Closing The Small Business Financing Gap: Invoice Factoring Basics

Submitted by admin on Thu, 2020/01/30 - 1:41pm

Even profitable businesses can have cash-flow issues. This is especially true in industries with long payment cycles, such as apparel, construction, food and beverage, government contracts, hospitals and nursing homes, importers and exporters, manufacturing, staffing, transportation and wholesale/distribution. “There is an $87 billion gap in financing for small businesses,” said Marina Linhart, CEO at Next Street. The firm advises cities, foundations, large institutions, lenders, and nonprofits that serve small businesses on how to do it better. Key to closing the gap “is having access to the right form of capital in the appropriate amount that is needed.” she noted. “Alternative finance provides a very useful product for very specific circumstances for a business.” 

Many companies in these industries rely on an alternative financing option known as factoring. 

Read Complete Article Thursday, January 30, 2020