Many small businesses and SMEs face cash flow and funding challenges from time to time. But when it comes to obtaining a financing solution, when they need it most, many traditional financiers are unable or unwilling to help. This is often because of the following:
- Trading history – The small business has not been trading long enough to satisfy providers that the business has ‘proven itself’
- Profitability – The small business may not have a history of profitability or may have some early losses. This may be because the business has invested heavily to launch or because it is a relatively new industry or niche.
- Net worth – The individuals may not have the required level of net worth to satisfy the financier’s requirements.
- Insufficient security – As the business may be small and young, it may not have the equity in it to satisfy the financiers requirements or the business owner does not have real estate security to provide to the financier as security.
- Balance sheet – The business may have very little equity or has taken on a high amount of debt
- Cash flow – The business may be cash flow negative from time to time which may cause concern to some financiers
Unfortunately, the result is that small businesses are starved of the finance support that they need to survive and grow.
We say ‘yes’ more often
Understanding these challenges, FactorONE specialises in structuring flexible and effective funding solutions for small businesses to allow them to manage cash flow and grow.
FactorONE also assists small businesses to refinance away from inflexible funding solutions or real estate secured funding to smarter solutions which grow with the business.
Talk to FactorONE for a smarter small business finance solution from a specialist who says ‘yes’ more often.
Next Steps?
To find out about how Invoice Finance can help you with funding your small business click here or call us on 1300 269 423
