Startups

How do Startups Obtain Financing?

Factoring companies work with startups with an understanding of the unique challenges entrepreneurs face daily. The majority of entrepreneurs begin their business venture with little to no cash reserve.  Not that they intended to start that way, but because they ran into unexpected costly hurdles.  These unforeseen expenses place tremendous force on your ability to operate efficiently enough to stay ahead of your competition.

Start up Financing

Get B2B or B2G financing for your startup company

For many startup companies, getting a bank loan isn’t an option when their only viable asset is their open account receivables outstanding or a PO from a Fortune 1000 company or government entity. Bank’s credit guidelines are strict. In fact, in 2016, only 23% of small business loans were approved compared to over 60% of alternative lenders, according to the Biz2Credit Small Business Lending Index.

Chances are unless you are a seasoned business with a proven track record and good corporate credit, SBA loans at a traditional bank won’t grant you a credit line. With a thin balance sheet, it’s challenging to find the funds necessary to thrive in your competitive industry. Many startups can procure government contracts that need finance. Paragon has a robust contract financing group for startups.

What are the Options for Startup Financing?

With an A/R Invoice Factoring and Purchase Order Financing programs, factors provide new companies with a lifeline of fresh, safe capital to stay on the frontline of your industry. If you work with creditworthy customers, the factor can advance you up to 90% of your current outstanding invoices. Factoring companies will happily wait the 45-60+ days for your creditworthy customers to pay. No longer will you have to turn down big contracts or large orders because you are undercapitalized.

What are Other Funding Programs Factors Offer for Startups?

Factoring companies offer not only invoice factoring and PO purchasing programs, but also provide:

  • Payroll Funding
  • Government Contract Financing
  • Letters of Credit
  • Supplier Guarantees for small to large companies across a wide variety of industries throughout the United States.

Factors have a quick and easy approval process that can be set up in as little as three business days. In most cases, factoring companies provide same day funding after receiving an emailed copy of your invoices and confirm them with our friendly, professional verification process.

What are the Benefits of Factoring for Startups?

  • Available, affordable & effective funding options
  • Factoring is not a loan
  • Take on bigger orders
  • A/R Management
  • You can leverage our fulfillment and logistics expertise
  • Credit protection against bankruptcy through Non-Recourse Factoring
  • Cash in your hands in as little as 24 hours
  • Up to 90% advanced on your Invoices
  • Pre-approve your client’s credit
  • 26 years servicing industries of all kinds

invoice factoring calculatorHow Much Does Factoring Cost for Startups?

Are you wondering how the cost and fees stack up compared to MCA loans, bank business loans rates? Or the cost of SBA loan rates, other lenders, and their financing packages? Use our powerful invoice factoring calculator to compare factoring rates.

GET FAST FUNDING FOR YOUR STARTUP!

Apply Securely, call 888-400-5931 ext 1 or email us.

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