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 “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’ needs. An industry specialist is more likely to incorporate value-added perks in their packages, too. Brown notes that the fuel cards and broker checks offered to Charter Capital clients in the transportation industry are a prime example.
“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 that some companies, such as Charter Capital, offer competitive and transparent rates as well as complimentary quotes.
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.