Accounts Receivable Financing Companies in Michigan
Businesses across the state of Michigan can get the capital they need to develop and thrive by partnering with accounts receivable financing companies. From Detroit to the Upper Peninsula, Michigan is home to a range of businesses and industries. Though automotive manufacturing isn’t the boom it once was, it still remains a major sector in Detroit and surrounding communities such as Dearborn. Other types of advanced and high tech manufacturing also have a significant presence in the state.
Cash Flow to Support Business Growth & Development
To attract new business and entrepreneurs, the state has implemented a range of business friendly incentives. As a result, Detroit has become a Midwest hub for young businesses to plant their seeds and grow. This helps the surrounding communities by creating more jobs and economic stability. With the resurgence of manufacturing in the state and Detroit becoming a startup center, Michigan is beginning to return to its brighter days and continues to pull itself out of economic recession.
Financing When Banks Won’t Lend
Yet in order to develop and advance business and the larger economic landscape, businesses need infusions of capital. Financial institutions in Michigan and elsewhere have been unwilling to lend to businesses with less than perfect credit scores. Banks prefer lending to firms with financial statements that show progressive growth year over year. This is hard to show in good economic times let alone during recessions. As such, securing commercial financing has been a challenge for many businesses in the region.
Accounts receivable financing companies in Michigan work different than banks and can offer commercial financing to businesses even if they lack strong financial statements and good credit scores. Invoice factoring companies provide a no-debt way your small- to medium-size business can get the capital it needs to grow, expand or just keep pace with your financial obligations.
Though accounts receivable financing companies in Michigan and banks can both provide your business with money, they are very different in almost every other way. Rather than applying for a loan, which is issued based largely on your FICO score, invoice factoring is based on the value of your receivables. So if you have current invoices, you can work with an accounts receivable financing company in Michigan to free up that cash without the wait.
Why Choose Invoice Factoring Companies in Detroit?
- Improve your month-to-month business cash flow
- Move into different markets or expand into new territories
- Hire additional staff either for permanent or temporary positions
- Bid on new jobs with the confidence knowing you can finance them
- Get cash to pay your ordinary bills
- Obtain cash infusion to cover the costs associated with running seasonal manufacturing or distribution businesses.
Deliver More Loads with Freight Factoring Companies in Michigan
Those businesses in trucking, transportation and freight can get the cash they need by working with a freight factoring company in Michigan. Use of freight bill factoring is common in the industry because many banks won’t offer lending to trucking and freight companies. With high expenses and thin profit margins, those in trucking and transportation can struggle from day to day. Freight bill factoring companies located throughout the state of Michigan can work with your small, mid-sized or large trucking company to help you improve your business cash flow and thus your operations.
How Does Factoring Work?
Invoice factoring is a process where you collect from your invoices in days instead of weeks. Your client, known as the debtor, pays the Detroit accounts receivable financing company within the agreed upon payment window (usually 30-days or less). The factoring company takes its cut for expediting the entire process, which is between 2-8 percent of the face value of the invoice. Rates vary based on the age of the invoice, the timeframe in which it is collected and other considerations.
So whether your business is just starting out, lacks collateral, doesn’t have a good credit score or history of profitability, you can still get capital if you have a valid invoice for a creditworthy client.
