11 Years in Business
Large Packaging company
Small Machine Shop
Receivable factoring for distribution of products is an ideal type of cash flow solution. Capital Credit has many distributors as clients. Both business models have an identical problem; vendors need to be paid before you can collect on charge sales. We make factoring simple to understand, provide flexible credit limits and same day approval decisions.
More often than not, our clients begin their businesses small and self-financed. After establishing a customer base and growth starts to evolve, they find themselves not able to self-finance the receivables portion. They get behind with their vendors and then it trickles into severe cash flow problems.
Capital Credit establishes a credit line is based on the creditworthiness of our client's customers, therefore credit score, balance sheet, and cash flow are irrelevant in our approval decision. We can approve a newly formed business that has not generated sales, financials or cash flow reports.
The cost of financing your clients by offering credit terms is a part of the distribution business
Distributors usually sell on net 30 to 45 day terms, for every dollar that is sold in a month they need to finance one dollar to one and a half dollars of receivables. The cost of financing your clients by offering credit terms is a part of the business. The question is not if you get approved for a bank loan or private equity to finance receivables, but the real question you may consider is are you going to have enough financial resources that will exceed your future needs.
What good is it to get a loan for temporary growth and tie up all your assets, what are you going to do when that runs out? Or worse, we have seen companies give up equity for just a minuscule amount of money to get them through seasonal cash flow problems.
Distributors learn very quickly how to keep a lot of different people happy because that is the core of what a distributor does. The manufacturers have buying programs that determine what price the distributor pays, so the distributor has to keep buying products to make the manufacturers happy. The retailers that buy from the distributor all want marketing help to sell the products that the distributor sells. Retailers also expect a lot of help when it comes to product rotation and support. All of that costs money and it gets worse when you realize that a distributor has large numbers of manufacturers and retailers to deal with each and every day.
Payroll is only one of the concerns that a distributor has as it is not cheap to keep the necessary professionals on hand that help a distributor run. There are also shipping costs, facilities costs, marketing costs, and all of the other smaller expenses that add up on an distributor in a hurry. To make matters worse, the distributor is probably operating at a significantly lower margin than the manufacturers and retailers, which makes cash hard to come by. Meeting all of these financial demands becomes even more difficult when some of those retailers decide to pay their invoices late and slow up the distributor's cash flow. All of these problems can be solved by the receivables financing services offered by Capital Credit.
A solid cash position makes most of the financial problems go away for any distributor in any industry. Capital Credit has the tools you need to solidify your cash position and allow you to meet all of the ongoing economic needs of your organization. Our accounts receivables funding programs turn those outstanding invoices from your retailers into cash and get you paid on or before the invoice due dates. Instead of waiting around to see how much cash you will get in payments this week, Capital Credit can tell you exactly how much you will get and allow you to plan your payments accordingly.
Payroll, vendor payments, and facilities costs all pile up over the course of a month. The challenge that distributors face is that none of these ongoing expenses can be put off to a later time. If you do not make payroll, then you risk going through employee turnover. If you do not pay your manufacturers' invoices on time, then you run the risk of losing your current pricing structure and watching your profit margins get even smaller. If you do not make your facilities payments, then you may have a hard time keeping your warehouses open. Capital Credit eases the stress from all of those issues by developing a business line of credit that you can rely on whenever you need it.
Every distributor knows that it is important to be an innovator if you want to attract new clients and keep your existing clients happy. Simply selling products is not enough to keep you at the forefront of your industry. You need to offer innovative products and services if you want to stay ahead of the curve and offer the kinds of services that retailers are looking for. The problem is that innovation takes time and costs money. As a distributor working on a tight margin with cash flow problems, it is not easy to divert funds away from critical daily expenses and use them on the projects that you know will benefit the future of your company.
Capital Credit takes away the hesitation that comes with investing in innovation by giving you the cash flow you need to grow your business. When you are able to use your invoiced sales to pay your expenses and create a cash surplus, then you eliminate the need for inefficient bank lending to grow your business. You are able to fund your growth projects on your own and you can start to create the kinds of programs that your retailers are looking for. We are a company that factors receivables and offers your company the kind of strong cash position you need to be able to investigate the programs that will strengthen your company's future.
Since Capital Credit understands your distributor business, we know that you simply do not have time to fill out forms every time you need cash. That is why we offer a simple application process for all of our accounts receivables funding programs. All you have to do is fill out our application and then submit it with the required information. We will process your application and give you an answer the same day. Once we have your account functional, everything we do is online and automatic. We make it easy for your company to get the cash it needs.
Our invoice factoring programs have no hidden fees and we have no monthly minimums. We work with you to develop an approval process and then we put that process into action for your company. We will advance you cash for your verified invoices within 24 hours of approval. That is how we are able to keep your cash flow moving and your cash position strong. We can approve an invoice in minutes, which means that you can also use our system to take on new clients and see if they are creditworthy right away. Our process has been developed over time with the help of distributors just like you. We know that our programs work because we have the satisfied distributors to prove it.
Accounts receivable funding through Capital Credit can be the perfect way for your distributorship to maintain strong relationships with manufacturers and grow your base of retailers. We will use our invoice factoring programs to provide you with the cash you need to meet your everyday expense obligations and make plans to innovate for your future. Contact Capital Credit right now and we will show you just how easy it can be to help your company grow, become profitable, and find new levels of economic success.