When you are a startup business or have one or two large clients, obtaining financing for your business is nearly impossible because of customer concentration issues. Look for other options, like AR Financing & PO Funding. Factoring receivables put the emphasis on your client’s creditworthiness, not your own. Meaning, companies with traditional non-bankable issues can get the funding they desperately need.
Funding Options for Your Business
How do I get Funding with High Client Concentration?
In this day and age, with the proliferation of big-box retailers, it is almost impossible not to have 1 or 2 big clients. Paradoxically, banks don’t like it if more than 30% of your business is from only one client. A factoring company can deal successfully with 100% client concentration in ways that banks or other loan types simply can not.
What if I’m a Startup Company Looking for a Loan?
It is very hard to get funded by a bank for a startup company. The same is true if they are less than two years old. Newly formed businesses are great candidates for a Factoring Company. If you can create sales to a creditworthy client, almost any factor can fund you and prefer starting with a “clean slate”.
What if I have no AR or own a retail store or a restaurant?
AR Funding or Purchase Order Funding will not work for you. There might be an SBA backed product that could help your working capital situation. However, if you are at least six months old and have credit card receipts there are Merchant Cash Advance programs that could help.
Businesscash has been funding since 1998 clients with 100% customer concentration issues, many times non-recourse.
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