Factoring Essentials - Does Your Business Fit In?

Factoring can work wonders for growth-stage businesses, but it’s all about finding the right financing partner for you.

Factoring can work wonders for growth-stage businesses, but it’s all about finding the right financing partner for you.

Accounts receivable financing has been around for a while, but has recently gone through a period of change. This new breed of factoring companies has helped loads of entrepreneurs grow their business without the typical restraints of other lending options. As with any product, there are a ton of options in the marketplace and none of them are exactly the same.

Unlike banks, which all have pretty much the same product, many factoring companies tend to approach the way they do business uniquely and to take advantage of some of the flexibility this lending space is offered.

At 12five Capital we try to be on the opposite side of the traditional financing spectrum. We look for business we feel would be a good fit in respect to:

  • A business owner's passion

  • The direction and goals of the business

  • What stage of the business lifecycle the business is in

  • What their financing needs are

There are many different ways to approach factoring and sometimes it can be hard to see the differences in two options. I believe the most important things to look out for in a potential financing partner is the way they communicate, the value they place on an entrepreneur's goals for their business, and the ability to make things happen quickly.

We understand that things don’t always go as planned, when you need financing to cover an unexpected new order and your needs are outside the scope of your contract what will your financing source say?

At the end of the day our goal at 12five is the cultivate the passion of our clients through finance, coming up with creative ways to make this happen is part of the fun. We take a holistic approach to this that allows a balanced and sustainable approach to growth for business that, once completed, lets us happily graduate our clients to less expensive financing options. If you’re our client forever, we are not doing our jobs.

Check out 12five.com to see if we are a good fit for you.

-Russell Malcolm

12five Capital