TULSA, Okla., Nov. 27, 2012 /PRNewswire/ -- Small businesses are finding it harder to get loans from banks because of the economic climate. However, when small businesses get turned down for loans from banks, they have another way to get ready cash – by selling their account receivables.
"Banks have definitely tightened up lending to small businesses," said Carah McKinzie, co-owner of CreativeFundingExperts.com. "It was difficult before, and now it is exponentially more so. They are afraid they are going to lose their investment. They want your first-born child and his first-born child."
"Many small businesses are struggling and wondering how they are going to pay people at the end of the month. Small business runs this country. We need the capital available to us so we keep the wheels turning," she said.
"If banks aren't lending, we're the next best thing," said Wayne Carter, co-owner of CreativeFundingExperts.com, a five-year-old company based in Broken Arrow, OK. "We help small businesses get the funding they need. We want small businesses to know that there is help available."
CreativeFundingExperts.com helps small businesses speed up cash flow by buying their future accounts receivables for immediate cash. This process is known by several names: factoring, cash-flow lending, merchant advances and bank statement financing and balance sheet funding.
"Many small businesses and retailers ask us 'What is factoring?' Many people don't know what factoring is," he said.
This is not a loan.
"In the downturn, people need money to keep their business open," she said. "Many entrepreneurs don't know alternative funding sources exist."
The cash flow process is fast and efficient. Companies usually get their money within 48 hours. CreativeFundingExperts.com doesn't require the cumbersome documentation and financial statements required by banks.
Factoring is a good way for companies to maintain cash flow to keep their day-to-day operations flowing smoothly.
"One of our clients performed a big job for the government. However, the government doesn't pay for 120 days. How can you stay in business if you don't get paid for four months? That's where factoring can help a small business stay in business," she said. "You need someplace that is going to give you money to keep your business afloat."
Small businesses have used CreativeFundingExperts.com to make payroll, pay for inventory and for expansion.
Typical clients include any business that invoices clients and companies that have inventory such as:
- Service industry
- Beauty salons
- Clothing stores
- Medical offices
- Software companies
- Electronics stores
- Liquor stores
Of course, not every company is qualified to work with CreativeFundingExperts.com, which looks for small business and retailers who meet these qualifications:
- Minimum average sales of $3,000 per month
- Not in bankruptcy
- In business for at least12 months
- Have no tax liens
- Are current on their leases
Companies that are accepted tend to use CreativeFundingExperts.com on a long-term basis.
"Companies have long-standing relationships with factoring companies on a month-to-month basis to keep cash flowing on a steady basis," he said.
Factoring is not a new concept. In fact it has been used for centuries.
"If you look at history, one of the ancient forms of lending was factoring. It was being used hundreds of years ago, well before banks came into existence," said McKinzie.
For more information or a free consultation, go to CreativeFundingExperts.com or call 877-458-1310.