The Sunshine State is known for its tourism, hospitality and retirement communities though businesses in a wide range of sectors thrive in Florida. With its orange groves and sugar cane farms, agriculture is also a large industry in the state as are international trade, aerospace aviation and finance.
Yet all businesses, particularly seasonal ones, can need help with their working capital from time to time to keep a strong cash flow. By using receivables to inject capital into your business, you can stay ahead of invoice payment gaps. With cash at the ready, your business can be prepared for when its busy season arrives.
Accounts Receivable Financing Companies from Jacksonville to Miami
The process of collecting an advance on your receivables is called invoice factoring. Generally offered by accounts receivable financing companies in Florida instead of typical banks, this alternative financing option can allow your business to cash in on your invoices without having to wait 30 or more days for your clients to remit payment under net terms.
How Does Factoring Work?
Though all invoice factoring companies in Florida work a little bit differently, the fundamentals of factoring are the same. It relies on the value of your invoices and your clients. For example, freight factoring companies in Jacksonville provide financing to companies in the trucking, freight and transportation sector. They purchase freight bills or invoices from trucking companies giving them the cash from their invoices right away. In this way, the trucking company doesn’t have to wait 30-days or more to collect payment from its client.
Your Client’s Credit Determines Whether You Qualify
So how does a Floridian accounts receivable financing company know it will get paid back? It performs a credit check on trucking company’s client, verifies the validity of the invoice, and looks at the company’s history of paying its bills. These are the fundamentals for how invoice factoring companies from Tallahassee to Miami operate though each company has different policies and procedures.
Each Florida Invoice Factoring Company Works Differently
Businesses seeking to work with Florida-based accounts receivable financing companies should do some research first to make sure the company they partner with fits their needs. For instance, are you looking for an invoice factoring company based in or around Jacksonville, Miami, Orlando, or Tampa? Are you seeking a firm with a national reach or would you prefer a company that only works locally or in or the southeast region?
If you are in the international trade business handling importing and exporting of goods, it is important to make sure you partner with a firm that works globally. This company should be well versed in international trade, applicable laws, tariffs, currency exchange rates and more. Drake Finance Group is one such firm that has a heavy focus on international business. Because international trade is a major industry in Miami, you are able to find options for accounts receivable financing companies that are local.
Search for Industry-Specific Factoring Companies
Freight bill factoring companies in Florida for instance might only work with trucking, freight and transportation companies. Other Miami-based freight factoring companies might only provide financing to high volume businesses, those financing $250,000 per month or more.
Many freight factoring companies however, particularly small or newly established ones, require low minimums such as $10,000 per month or less. It is important to know the relative volume of financing you’ll need before selecting the company you will partner with.
Some invoice factoring companies offer same day fast funding while others companies offer “fast funding” in five business days. Fast can be a nebulous term so be sure to clarify it so you’ll know precisely when you’ll receive payment. Don’t hesitate, take a look at our list of Florida’s best factoring companies and compare. Or contact us and we can help you find the right provider.
Capital Funding Solutions
2021 Tyler Street, Suite 208, Hollywood, Florida, 33020
Drake Finance Group
5201 Blue Lagoon Drive, Miami, Florida, 33126
5323 Millenia Lakes Blvd #355, Orlando, Florida, 32839
1450 Bickell Ave. Suite 2660, Miami, Florida, 33131
Gateway Commercial Finance
340 SE 1st Street, Delray Beach, Florida, 33483
3250 NE 1st Ave Unit 305, Miami, FL, 33137
12747 Biscayne Blvd, Miami, Florida, 33181
6750 North Andrew Ave, Suite 200 Fort Lauderdale FL 33309
Red Door Capital Group
3104 North Armenia Ave Suite 2, Tampa, FL, 33607
5870 SW 8th Street Suite # 6 Miami, FL 33144
2605 Enterprise Road East Suite #250 Clearwater, FL 33759
Summar Financial, LLC
2299 SW 27th Ave, Miami, Florida, 33145