Is It Important To Find A Finance Company That Specializes In Your Industry?

by Crestmark 23. May 2012 12:19

Are all factoring companies equally capable of financing every deal? From the perspective of someone seeking credit for your business, it can be tempting to knock on the door of every bank and non-traditional lender in your area and online. But is it really better to work with anyone who will give you the kind of loan you need?

Your Field Is Unique

Immersed in the daily reality of life in your industry, it's easy to lose perspective on just how unique your business really is. The flow of revenue for the transportation industry – punctuated by delays, spiking gas prices, and lag time between payments – is very different from the expected pattern in a staffing agency, which in turn is different from a retail business. Because non-traditional lenders are often relying on these patterns to provide financing, it's vital that they have an understanding of what to expect. Your explanations may not tell them what they need to know.

A Specialized Company Has Custom Solutions Ready To Go

Many fields have developed specific lending practices that are unique within that industry. For example, trucking has freight bill financing and fuel cards. Government contract financing has to understand the additional paperwork and disclosure requirements that are necessary when working with federal or state organizations. A company that has worked with your field before knows what to expect and has already created unique solutions that are designed specifically to meet your needs. You just won't find that level of service in factoring companies that don't know your business.

Crestmark has always been proud of our customized offerings for fields like staffing, manufacturing, transportation, apparel, and government contracting. Even when we don't have prior experience in your field (a rarity considering the diversity of our staff and years of lending across industries) we know the questions to ask in order to provide you with the right non-traditional lending tools for your needs. 

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We have great customers!

by Michelle 9. July 2009 03:53

Right..??

Back in the good old days, you know before the government took over GM… Before the likes of Lehman Brothers, Circuit City and countless others went belly up.  Back when doing business with any large, well known company was practically a guaranty of growth for your business. Your first class ticket to ride the smooth waters of prosperity.

You know…BEFORE 2008.

We all now (and at least for the foreseeable future) find ourselves living in an alternate reality.  One which causes business owners to question the health and life of even their best customers.  Even large, solid companies that are not running out of red ink while printing their quarterly financials, are holding on to their cash as long as possible.  The result?  Slower payments to their venders. 

Can a factoring company help in this situation?

Yes!

Most factoring companies spend a good deal of their underwriting process vetting their prospective clients’ customers.  And for good reason.

It’s the ultimate goal of both the factoring company and client to get paid for their receivables.  This is a crucial component of any factoring relationship.  Over the years we have helped many clients sail past the squalls and choppy waters of customers who posed a big credit risk.

So…here’s to partnership and smooth sailing; or at the very least a less bumpy ride!

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