How does a person get more working capital?
March 30, 2009 by Accounts Receivable Factoring
Filed under More Factoring Answers
Can you answer Matt’s question about Factoring?:
A friend of mine just starting a franchise restaurant in Jan and has been running in the red since then. The problem is that he is about $3k in the red per month, but only has about $15k in working capital in the bank. He already used his house to get the SBA loan to start the place and the startup was a lot higher than his franchise told him. Apparently they aren’t helping him much, so he is stressed as to how he can get some quick capital and survive through the year.
Accounts Receivable Factoring
A friend of mine just starting a franchise restaurant in Jan and has been running in the red since then. The problem is that he is about $3k in the red per month, but only has about $15k in working capital in the bank. He already used his house to get the SBA loan to start the place and the startup was a lot higher than his franchise told him. Apparently they aren’t helping him much, so he is stressed as to how he can get some quick capital and survive through the year.
Accounts Receivable Factoring
Factoring Feedback: Capital can come from individuals or firms specializing in venture capital funding. In either case you will be required to demonstrate that your business can become profitable (return on investment) in the foreseeable future. If you can answer the following questions with a yes, you will not have difficulty raising funds.
1) Is your customer base expanding?
2) Is your competition decreasing?
3) Is your reputation for quality and service better than that of your local competitors?
4) Are your operating costs under control?
5)You have not been in business long enough to have audtable records. How will you prove your revenue flow and costs.
GOOD LUCK