Author: Charter Capital

New guide shows how minor differences like industry expertise and terms impact outcomes for small businesses.

HOUSTON, April 13, 2023 – Leading invoice funding company Charter Capital says factoring can help small businesses overcome a multitude of growth-related challenges, but outcomes often hinge upon comparing factoring companies and selecting the right partner. Additional details and tips for finding the ideal fit can be found in press releases and “6 Ways to Compare Factoring Companies & Find the Best One,” which is now live on charcap.com.

Applications for invoice factoring traditionally comprise less than five percent of overall small business funding requests, according to the latest Small Business Credit Survey (SBCS), a collaboration of all 12 Federal Reserve Banks. This is because 87 percent of small businesses approach banks and credit unions when seeking funding, channels which don’t typically offer financial products like invoice factoring. Because of this focus, 35 percent don’t receive any funding at all, and 34 percent have a funding shortfall.

“The Small Business Credit Survey breaks down application, approval, denial rates, and other data by type of lender, including whether funding is being sought at a large bank versus a small bank,” explains Gregory Brown, co-founder and Executive Manager at Charter Capital. “That’s helpful because it shows small businesses are underserved through traditional channels. However, it doesn’t show outcomes, let alone conditions that influence successful partnerships.”

Brown says that these details are of equal importance because the long-term success of a company may hinge on the partners it selects, especially as a small business is growing. For instance, a partner with industry expertise will understand concerns like revenue cycles and typical trade agreements and will build funding solutions that align with the business’s needs. They can help connect the company with top inventory financing options and other essential resources. An industry specialist is also more likely to incorporate value-added perks in their packages. Brown notes that the fuel cards and broker checks offered to Charter Capital clients in the transportation industry are a prime example. For freight brokers specifically, freight broker factoring offers tailored solutions that provide immediate cash flow while ensuring brokers can cover carrier payments without delays.

“It’s impossible to know what’s out there until you start to compare factoring companies,” Brown continues. “Business owners should be asking the hard questions, like whether a prospective partner can grow with them, how quickly cash will be available, and if long-term commitments are required.”

Brown adds that fees create another layer of complexity, but partnering with an invoice factoring company like Charter Capital—offering competitive and transparent rates as well as complimentary quotes—can simplify the process.

Those interested in learning more about invoice factoring or who would like to request a complimentary quote may do so by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

Surveys show 41 percent paid late fees to vendors last year despite three-quarters believing late payments strain business relationships.

HOUSTON, March 9, 2023 – Leading invoice funding company Charter Capital says late vendor payments are creating more friction between small businesses and their suppliers. The issue and potential solutions for delinquent small businesses can be found in “9 Tips for Funding and Managing Vendor Payments,” which is now live on charcap.com.

The latest publication draws on research from various PYMNTS surveys, which indicate that three-quarters of procurement professionals believe late payments strain business relationships. Despite this, 41 percent still paid at least one late fee in the previous year. Roughly half acknowledged that more than 10 percent of their payments contained late fees.

“This is significant because companies that don’t prioritize vendor relationships are putting their businesses at risk,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Businesses that pay vendors late often lose preferential pricing, so in addition to getting hit with a late fee, they’re paying more with each order. They’re also more likely to get cut off when there’s a supply chain disruption, which may mean they can’t fulfill their own orders.”

Data entry errors, difficulty managing spending, and lack of real-time data are key contributors to delinquent payments, Rosenthal notes. How each issue manifests itself will vary though. For instance, some businesses may not be aware that multiple people within the company are paying for the same subscription, so the business winds up paying multiples of the fee. Paying for unused subscriptions is also a common issue, which can easily eat up hundreds, if not thousands, of dollars each year. 

Rosenthal says that accounts payable (AP) automation software can reduce or eliminate these concerns, but only half use any kind of automation software to manage non-payroll spending. Having working capital on hand for vendor payments is also essential.

“A business can do everything right and still have a working capital gap due to a spike in activity or rapid growth,” Rosenthal continues. “Even if the business doesn’t usually require additional capital, it should have access to funds to ensure it can keep up with vendor payments when an issue arises.

He notes that invoice factoring is ideal in these situations because companies like Charter Capital don’t have monthly fees or minimums. A business can set up an account and access funding only when necessary.

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

Fueled by optimism about the future, Main Street is exploring business expansion opportunities again, industry insiders say.

HOUSTON, February 9, 2023 – Leading invoice funding company Charter Capital says a shift in optimism among small business owners is fueling expansion initiatives on Main Street again. Full coverage of the topic can be found in “8 Telltale Signs it’s Time to Expand Your Business,” which is now live on charcap.com.

The latest report comes on the heels of a Small Business Majority survey which indicates that, although concerns such as inflation and obtaining working capital persist, six in 10 small business owners are optimistic about their business prospects in the coming months. 

“There’s still a divide in small business recovery,” explains Gregory Brown, Co-founder and Executive Manager at Charter Capital. “There are some industries, such as manufacturing, that haven’t bounced back yet, but most have and the adversity they’ve overcome is creating confidence.”

Brown says that his experiences align with survey data which indicates 75 percent of small business owners are having at least some difficulty obtaining capital. Yet, he notes that this is representative of the fact that most try to secure capital through traditional funding sources such as bank loans, as opposed to alternatives like invoice factoring, which has much higher approval rates.

The primary difference, Brown contends, is that businesses were largely seeking capital to cope with cash flow gaps caused by slow-paying clients and inflation in recent history. Now, there’s greater demand for capital to assist with business expansion.

“Demand is exceeding supply across a number of sectors,” Brown continues. “In many cases, small businesses simply can’t keep up without securing working capital to get a larger space, purchase additional supplies, or address recruitment initiatives.”

Brown says that invoice factoring is an ideal working capital solution in these cases because approval isn’t contingent upon the business’s credit score and other stringent requirements banks usually have. Instead, B2B invoices are purchased at a discount, and cash is sent to the business right away. The balance is cleared when the customer pays the invoice, so the business doesn’t have any debt to pay back either. It’s free to move forward and grow.

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

The majority of small business owners believe a recession is happening now or is imminent and that they are prepared to withstand it.

HOUSTON, January 10, 2023 – Leading invoice funding company Charter Capital says small business owners aren’t feeling optimistic about the economy, but most have taken steps to fortify their businesses and feel confident about their chances of survival. Additional coverage of the topic can be found in “Small Business Management: Weathering Economic Uncertainty Like a Pro,” which is now live on charcap.com.

The release comes on the heels of a CNBC report which reveals that 97 percent of small business owners feel the nation is currently experiencing a recession or will experience one by the end of 2023. Even still, 61 percent feel their business is prepared to withstand it if a recession were to occur.

“Many of today’s small business owners had to cope with issues like tight budgets, trouble making payroll, and difficulties obtaining financing during the pandemic,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Some confidence is warranted. However, any upcoming challenges may not be the same as those previously faced, and the solutions that were effective before may not work going forward.”

Rosenthal notes that the pandemic also spurred record-breaking years for business creation, which means there are now millions of new small business owners still navigating the early stages of growth. He advises both groups to take a broad approach to preparation and engage in activities that will make their businesses stronger. 

“Simple steps, like automating repetitive processes for greater productivity and cost savings, and ensuring customers are happy now, will go a long way toward future-proofing a business,” Rosenthal notes.

He also suggests that small business owners line up funding options before they need cash, as traditional sources dry up during difficult economic times. Businesses are then often tempted to accept unfavorable terms to make ends meet and may wind up with excessive debt as a result. Invoice factoring, he says, is an ideal solution because it can be set up in advance. Then later, when working capital is tight, the company can accelerate payment on invoices to keep things running smoothly without taking on debt.

Those interested in learning more about invoice funding may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

Nine-in-ten hiring businesses say finding qualified candidates is a challenge, while the cost of labor sees its greatest hike in 20 years.

HOUSTON, December 13, 2022 – Leading invoice funding company Charter Capital says small businesses are feeling especially squeezed by the current labor market. Between the record-breaking cost of labor hikes and challenges filling vacancies, employers are exploring new ways to address the strain. The topic is covered in depth in “15 Tips for Combatting Labor Shortages and Increased Labor Costs,” which is now live at CharCap.com.

Nine-in-ten businesses that are hiring say finding qualified candidates is a challenge, the report notes, drawing on data from Goldman Sachs. A net loss in people seeking employment is tied to increased numbers taking early retirement and reduced immigration during the pandemic, with some industries feeling more strain than others due to a reallocation of workers. Industries with the greatest number of unfilled job openings include financial activities, professional and business services, durable goods manufacturing, leisure and hospitality, and wholesale and retail trade, per U.S. Chamber of Commerce data.

 “Small businesses tend to have more difficulty filling their roles because they don’t always have an HR department, let alone a team dedicated to recruitment and creating competitive benefits packages,” explains Gregory Brown, Co-founder and Executive Manager at Charter Capital.

At the same time, the nation is experiencing its largest labor cost increase in 20 years, per Reuters. Although business owners may feel tempted to cut salaries to help cope with the strain, doing so only makes it harder to attract and retain talent, which Brown notes can harm business success in the long run. 

“Businesses that take care of their teams and use cost-cutting measures such as employee schedule optimization and automation fair better over time,” Brown contends. “Organizations can make themselves more appealing to jobseekers by offering perks that don’t necessarily increase costs as well. Flexible scheduling, hybrid work environments, and creating positive, inclusive cultures are prime examples.”

He says that businesses struggling to build a budget for recruitment or HR, and those that may need the occasional cash flow bump to cover payroll, can get help through invoice factoring. It accelerates payment on B2B invoices, so organizations are in a better position to handle vital expenses without taking on debt.

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

Millions of small businesses are risking it all by failing to set up an adequate emergency fund, new report shows.

HOUSTON, November 8, 2022 – Leading invoice funding company Charter Capital says millions of small businesses across America are shortchanging themselves and putting their companies at risk by failing to set up a proper emergency fund. Although able to address their daily needs, businesses in this situation are often unable to cope with unexpected lulls and emergencies, which can hinder long-term growth and ultimately result in closure. Full coverage of the situation can be found on “5 Practical Reasons to Build a Small Business Emergency Fund,” which is now live on charcap.com.

The company draws on research from JP Morgan that shows one in four small businesses has less than a 13-day cash reserve buffer. Those in low-wage or labor-intensive industries often fare worse than their counterparts, as it’s much harder for them to build cash reserves. Failing to create an emergency fund is especially risky, given that 82% of business failures are linked to cash flow issues, per National Federation of Independent Business (NFIB) research.

“Businesses can be perfectly able to manage day-to-day expenses and even be profitable, but still face difficulties when an emergency hits,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Even if the business can cover the emergency expense, it’s often at the cost of something else, such as marketing or seizing business opportunities, which can stall growth in the long run.”

Rosenthal says that small business owners in need of a quick cash injection will often accept terms that aren’t in the best interests of the company to make ends meet, which adds to the burden. Not only is money immediately being funneled away from growth opportunities, but the business is then paying exorbitant fees and interest that set it back further. 

“Businesses should have three to six months of expenses set aside in an emergency fund,” Rosenthal continues. “This should be separate from daily working capital, regular savings, and the business owner’s personal funds.”

Because it can take years to build up an adequate emergency fund, Rosenthal recommends that businesses also plan ahead and have a source of emergency funding ready. Invoice factoring, he says, is ideal because it accelerates cash flow and doesn’t require ongoing payments or going into debt.

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

Unable to make large equipment purchases to support growth, small businesses shift focus to alternative funding sources.

HOUSTON, October 11, 2022 – Leading invoice funding company Charter Capital says small businesses are recovering and eager to grow but are hitting a wall when it comes to obtaining heavy equipment financing. Often leveraged by businesses in construction, oil and gas, manufacturing, transportation, and other industries, heavy equipment financing is designed to make it easier to purchase expensive machinery or vehicles that are necessary for daily operations and growth. However, many seeking assistance are coming up short when approaching traditional lenders, creating a surge in interest in alternative funding options. Full coverage of the topic can be found in “Heavy Equipment Financing: A Beginner’s Guide to Getting Funding,” which is now live on charcap.com.

The company notes that purchasing heavy equipment is typically preferable over leasing when a business has strong cash flow, the equipment will be used to generate revenue, and the asset will be held for an extended period of time. With more business owners reporting they don’t qualify for traditional heavy equipment financing, that the amount offered is too low, or they can’t generate enough cash for a down payment, purchasing, however, often seems out of reach.

“One of the biggest challenges with specialty equipment is that lenders from outside the industry can’t always properly value the asset,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “When a lender thinks something is worth less than it actually is, they may offer a loan that’s not large enough to cover the cost or outright deny the business owner.”

Rosenthal says that businesses will sometimes go for an SBA loan, term loan, or line of credit instead, though strict requirements related to credit and time in business often eliminate these options for growing companies. With invoice factoring, they can accelerate cash flow enough to make a purchase, bridge a funding gap, or provide a stronger down payment. 

“Invoice factoring is a welcome relief for small businesses gearing up for growth,” Rosenthal continues. “We’ve seen an uptick in business owners leveraging factoring for heavy equipment purchases lately because it’s so versatile and doesn’t have the same rigid requirements that other funding sources do.” 

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

Roughly 70 percent of digital transformation initiatives fail, but savvy businesses can see returns by addressing common barriers.

HOUSTON, September 13, 2022 – Leading invoice funding company Charter Capital says digital transformation initiatives across small and midsize businesses are stalling out as a new epidemic of sorts takes hold. Known as “digital transformation fatigue,” and now impacting 43 percent of all businesses according to Avanade research, the term references the burnout felt by teams constantly under pressure to produce bottom-line results as they adopt newer digital technologies. Around 70 percent of initiatives today fail per McKinsey, taking with them the hope of increased profitability. Full coverage of the topic can be found in “Digital Transformation: Pros and Cons for Small Businesses,” which is now live on charcap.com.

As digital transformation reaches a high level of maturity, companies see a 43 percent gain in net profit margins over their peers per Deloitte. These gains are the columniation of company-wide improvements. Stronger team collaboration, improved customer experiences, removal of data silos, and greater efficiency are major contributors. 

“Businesses are often excited by the stats and invest in modernization,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “However, they hit unexpected barriers during implementation.”

He draws on Avanade’s research which shows that 46 percent of initiatives are impacted by hiring issues. Modernizing legacy systems and failure to integrate new technology with existing systems impact 35 and 40 percent of initiatives, respectively. 

“They have an idea of where they want to go and make that initial investment,” Rosenthal continues, “but initiatives stall when talent and integrations fall through. Because of these hurdles, they put off finalizing the initiative and ultimately don’t get the return they’re counting on.”

Rosenthal says it often comes down to cash. After the initial outlay, businesses are unprepared for the additional expenses to finalize their transformative project. Many are now turning to invoice factoring to move the needle. By unlocking cash trapped in unpaid B2B invoices, factoring helps businesses clear the last hurdles and start seeing the returns they hoped for.

Those interested in learning more about factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

As inflation and supply chain issues drive prices up, Main Street explores unconventional inventory funding solutions.

HOUSTON, August 9, 2022 – Leading invoice funding company Charter Capital says small businesses are exploring novel ways to fund their inventory purchases as record-breaking inflation rates and supply chain issues continue to drive costs up. The company examines the scope of the problem and potential solutions in “Top 4 Types of Inventory Financing for Small Businesses,” which is now live on charcap.com.

With business logistics costs rising 22 percent in 2021 per The Wall Street Journal, and continued strain in the first half of 2022, small businesses have been hit especially hard. Applications for funding to help meet operating expenses, a bracket that includes inventory and payroll, dominated in the latest reporting period per the Small Business Credit Survey. The report further notes that half of all businesses with a funding shortfall don’t apply. Weak business financials and overly strict lender requirements are the most-cited reasons for failure to apply despite need.

“It’s a difficult situation,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Small businesses, which are typically most vulnerable to inflation and supply chain disruptions, have been weathering the situation for so long that they’re at a breaking point.”

Rosenthal says that many have tried to absorb the increased costs to maintain customer relationships with the expectation that the economy and supply chain issues would calm. Now, they’re struggling to cover basic expenses, and traditional inventory funding sources, such as short-term loans and business lines of credit, are drying up as banks try to limit their risk.

“We do what we can to help,” continues Rosenthal. “Many small business owners have never heard of invoice factoring, let alone how it can help them fund inventory. When they realize how easy it is to qualify and that they can get cash for inventory right away, it’s a huge weight off their shoulders.”

Unlike other funding sources that create debt, invoice factoring is like a cash advance on unpaid invoices. The business is free to purchase inventory, cover payroll, and address other expenses. The advance is paid off when the business owner’s customer pays their invoice according to Rosenthal. He notes that Charter Capital has seen a surge of applicants from transportation, staffing, manufacturing, and other industries as a result.

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.

More than a quarter of small business owners report that B2B payments are now coming in 20-30 days past due.

HOUSTON, July 11, 2022 – Leading invoice funding company Charter Capital says more doors on Main Street may soon be shuttered as late payments in the B2B sector surge. As reported by YouGov, around a quarter of small businesses are receiving payments 20-30 days after their due date. As most leverage net 30 payment terms, the average span from completing work or delivering goods to getting paid is about 60 days. Around one-third of those surveyed say the strain is putting their business at risk for closure. Full coverage of the topic is available in “Slow-Paying Clients: 5 Strategies for Dealing with a Difficult Accounts Payable Department,” which is now live on charcap.com.

While many business owners felt optimistic about the economy going into 2022, inflation quickly turned the tables. Reduced customer spending across non-essential services and goods as well as rising business costs are making it harder for small businesses to keep up with financial obligations, explains Charter Capital Co-Founder and Executive Manager Gregory Brown.

“It’s a vicious cycle,” Brown says. “Cash-strapped businesses hold off on paying their invoices to ensure they can buy supplies and cover payroll. Meanwhile, the company they’re not paying is doing the same.”

Brown notes that there are many ways businesses can improve their cash flow but addressing the root cause of the problem is essential. In this case, small business owners can speed up payments by applying a few tested strategies, such as having written customer credit policies and an airtight collections process.

“Business owners can still offer net 30 payment terms,” Brown continues, “but they should be thinking critically about who receives this type of in-house financing too. The same is true when a client can’t pay and wants a payment plan. It’s ok to be flexible, but the business should ensure the terms benefit the business, not just the customer.”

Brown says that invoice factoring is also helpful. Instead of waiting for payment, the business simply sends their B2B invoice to a factoring company for instant payment and the client pays the factoring company when payment is due. 

Those interested in learning more about factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.