America's Credit Rating was Downgraded Again - What does this mean for your business?

America's Credit Rating was Downgraded Again - August 2023

Are you like most people out there, wondering what the heck is going on is America.  Is the sky falling?  Is America dying? Are we full steam ahead for a recession or even a depression?  Do you have a game plan if/when this happens?  Have you thought about how you are going to finance your business?

Below are some of the Financial Problems

1. Inflation is putting a serious hurt on most Americans
2. Products are still hard to obtain
3. The cost of fuel is through the roof and rising on a monthly basis
4. Food costs are 30% more than what is was two years ago
5. People are maxing out their credit cards
6. Mortgage rates haven’t been as high as they are since President Carter was in office
7. Banks are not lending money
8. People are living pay-check to pay-check
9. Buying or leasing a car/truck/van/ costs twice as much as it did in 2021
10. If you own a business, you are paying higher costs in supplies and in staff

We can keep going with this list, but you probably see the grim picture that I am painting.

How are you and your business going to survive? 
Working capital is almost non-existent for small and or new businesses.  Most businesses are feeling the credit crunch and lack of cash flow to manage their businesses.  Your customers (if they have not yet) will be looking for longer credit terms as they too have slower paying customers.  The longer it takes for your customers to pay the more difficult it becomes for you business to make your payments on time. 

If you have a line of credit from the bank and you have been tapping into it, you know that the financing rates that you are paying today are three times higher than what you were paying a couple of year ago.  If this is the case, you are still one of the lucky ones, as most businesses are not going to even qualify for a business line of credit.  Many companies are turning to merchant cash advance companies.  If you have ever taken one of these loan in the past you will know that the interest rate that you are paying back is well over 30% and you are paying this back via ACH on a daily-basis.

So, what are you going to do?  Throw your hands up in the air and accept defeat or is your business worth fighting for?  Are you going to sit back and complain on why America if is not what it used to be or will you take a proactive approach?  

We think you should think outside of the box, you need to be more creative on how to finance your business and how to take advantage of obtaining new customers (when your competitors cannot), while being plush with cash to fund your company. 

What is Invoice Factoring and can it be your salvation?

Yes, invoice factoring can be your salvation, we are 100% certain.  Factoring is strictly business to business, so we can only help companies that are B2B. 

Here is why invoice factoring is a great fit.

When you sell a factoring company an invoice, you are always one day away for being funded (once your account is setup).  After you provide a product or a service to your customers, you then send them in invoice and wait to get paid.  If you offer net 30-day terms you will not get paid for over a month and two months if you are offering net 60 days.  If you factor that invoice, you are selling it to us the same day you send it to your customers.  We verify the invoice for validity and then send you the lion share of the money within 24 hours.  We hold back a small percent and put this in your reserve account until your customers make the payment.  When they do, we send you back your reserve money less the factoring fee. 

Selling your invoices means you are always one day away from being paid.  Suppose you have a customer that has a track record of paying you in 15 days and you count on them to make their payment in a timely manner.  When you come to you and ask for longer payment terms, are you going to tell them no?  If they go from 15 days to 60 days, are you able to wait?  We hope so but most companies cannot.  When you customers turn down new business because they cannot wait to get paid past 30 days, this is an opportunity for your company.  You can offer 30 day or 60 day terms because we are going to fund you within 24 hours. 

Invoice factoring is not a loan; you are not taking on any new debt.  You are simply selling your accounts receivable at a discounted rate for immediate cash. 

Your credit score does not matter, as we are paying you and your customers are paying us.  For the most part all you need are good customers to qualify. 

Be prepared for when the financial sky does fall and apply today