What Kind of Business is the Best Fit For Factoring?
We are often asked what kind of company is the best fit for factoring. Another way to word it is, what type of companies is factoring best for when it comes to providing access to working or growth capital?
There are two aspects to this question we want to discuss in order to answer it completely:
- Types of Industries
- Profile of the Company
Most Common Industries that use Factoring
We’ll start by looking at the types of industries that most often use factoring. These industries include:
- Distributors
- Manufacturers
- Healthcare
- Trucking & logistics
- Staffing
- Consulting companies
- Agencies
- Government contractors
Essentially these industries have two things in common:
They are all Business-to-Business companies that generate Accounts Receivables.
Profile of the Companies
When we look at specific companies, there are several more variables that come up.
The most common aspects include a company going through rapid growth, or if the owners have any credit challenges.
These are the types of scenarios we can help with, situations when traditional banks are unable to help.
Companies like Primary Funding come in and help these businesses for a few months to a few years, depending on the specific situation. At Primary Funding, we focus on helping our clients graduate and move on to the banks and traditional financing.
The bottom line is that we can help B2B companies with accounts receivables that banks are unable to help.
If you have a business with strong growth and need help keeping up with the business needs required to support the growth, you should be talking with us.
And if you’re a banker with clients you can’t help, you should definitely send them to us.
Helping B2B companies with Accounts Receivable is what we do.
Other posts you might like:
- Avoid the top mistakes people make when selecting a factoring company
- What you need to know about factoring contracts
- How Invoice Factoring works
