Go green with renewable energy financing companies
Many firms can struggle to obtain working capital to sustain and grow their businesses but this is particularly true if your business is in a new industry such as green or renewable energy production. Yet without sufficient funding, alternative energy companies can struggle to advance. Banks can be slow to lend business loans to these new industry firms. In addition to being bureaucratic, loans require complicated and time-consuming application processes. Moreover, these lending institutions are reluctant to work with new or unestablished companies that have yet to prove themselves. In this more rigid lending environment, banks are less likely to give an untried, higher risk green energy company a chance. A common solution to this problem for many energy companies is energy factoring.
Financing alternative energy firms in the face of risk
Alternative energy companies with current creditworthy customers can take advantage of energy factoring. Rather than waiting to collect payment from customers, they can sell these same invoices to renewable energy financing firms at a discount. By collecting their payment as an advance right away, they can then have the working capital they need to sustain their business.
Renewable energy financing from an invoice factoring company offers a number of benefits to both established and less established alternative energy firms. There are also many factoring programs for renewable energy contractors. The benefits of factoring include:
Strengthen your business cash flow or cash reserves
Purchase or lease new renewable energy equipment, devices or machinery
Better invest in advertising and marketing campaigns to promote the company and its green energy products
Cover large expenses associated with developing, testing and producing alternative energy
Costs of scientific experiments and testing
Pay down ordinary bills such as overhead, payroll, and other operations expenses
So why are factoring companies willing to offer financing for renewable energy projects despite the higher risk involved? These energy factoring firms are willing to take on the risk because this means the reward will be greater as well. Most banks and other lending firms shy away from calculated risk despite the rewards because of regulations and conservative policies. Banks tend to prefer to lend to more established industries, which may leave those in these new green energy firms out in the cold.
Green energy firms that can take advantage of renewable energy factoring companies, including:
Solar energy companies, such as those that manufacture solar panels, build them and install them
Carbon offset firms
Windmill manufacturers and builders
Hydroelectric power stations and turbines
Geothermal power plant
Industrial biomass production firms
Get the greens to go green with renewable energy factoring and solar factoring
Energy factoring companies believe financing alternative energy projects should be an uncomplicated process. Credit-worthy customers are all an alternative energy company or project needs in order to qualify for fast renewable energy financing. Some firms may specialize in financing alternative energy while others will provide funding to both alternative and traditional energy enterprises.
Terms for renewable energy factoring will vary from company to company. An advance on the invoice is generally 80-90 percent of its value is standard. The fees charged by renewable energy factoring help cover the factor in case of non-payment. Factoring is a higher risk undertaking than business loans thus the costs associated with financing renewable energy projects is higher.
Learn More About Energy Factoring Companies:
- Why Do Businesses Choose Invoice Factoring?
- Finding the Best Invoice Factoring Company… for Your Business
- Why Choose Invoice Factoring?
Search Our List to Find Energy Factoring Companies Near You:
1st PMF Bancorp
9701 W. Pico Blvd., 1st Floor, Los Angeles, California, 90035
American Receivable Corporation
12655 N Central Expressway, STE 675 Dallas, Texas 75243
Bay View Funding
2121 S. El Camino Real, San Mateo, California, 94030
Blue Ridge Factors
4120 Airport RD Unit B, Hillsville, Virginia, 24343
Business Factors & Finance, Inc.
220 Ave I , Redondo Beach, California, 90277
Carolina Piedmont Capital, Inc.
5540 Centerview Drive, Ste 200, Raleigh, NC, 27606
Dash Point Financial
6104 Browns Point Boulevard, NE, Tacoma, Washington, 98422
650 5th Ave, 24th Floor, New York, New York, 10019
eCapital Freight Factoring
10100 W. Charleston Blvd Suite 220, Las Vegas, Nevada, 89135
260 Spadina Avenue, Suite 400, Toronto, Canada,
250 Yonge St #2201, Toronto, ON,
Partners Funding Inc.
923 North State Street, Suite 120, Fairmont, MN, 56031
Porter Capital Corporation
2112 First Avenue North, Birmingham, Alabama, 35203
Quasar Capital Partners LLC
9330 LBJ Frwy. Suite 943B, Dallas, Texas, 75243
1000 Mansell Exchange Building 300, Suite #340 Alpharetta, GA 30022
10320 Little Patuxent Pkwy Suite 200 Columbia, MD 21244
1925 18th Avenue NE Suite #115 Calgary, AB T2E 7T8
8307 University Executive Park Drive, Suite #250 Charlotte, NC 28262
17 W 415 Roosevelt Rd. Oakbrook Terrace, IL 60181
1333 Corporate Dr. Suite 117 Irving,TX 75063
8400 E. Prentice Ave. Suite 1500 Greenwood Village, CO 80111
11601 Pellicano Dr., Ste. B-5 El Paso, TX 79936
50 Harrison St. Suite #310-G Hoboken, NJ 07030
8410 N. Sam Houston Pkwy W Houston, TX 77064
3635 Quakerbridge Road Suite #4 Mercerville, NJ 08619
5870 SW 8th Street Suite # 6 Miami, FL 33144
3470 Washington Drive Suite #206 Eagan, MN 55122
3102 West End Ave. Suite 400 Nashville, TN 37203
4334 Northwest Expressway Suite 242 Oklahoma City, OK 73116
1 International Plaza Suite 550 Philadelphia, PA 19113
1029 H St. Suite 102 Sacramento, CA 95814
2025 Gateway Place Suite #370 San Jose, CA 95110
10430-1 Pioneer Blvd. Santa Fe Springs, CA 90670
1100 Dexter Avenue N. Suite #100 Seattle, WA 98109
2605 Enterprise Road East Suite #250 Clearwater, FL 33759
5780 Timberlea Blvd. Suite #103 Mississauga, ON L4W4W8
310 Airport Road Suite #500 Williston, ND 58801
1100 Dexter Avenue N. Suite #100 Seattle, WA 98109