Ozarks Capital Funding

Companies need cash flow to operate their businesses.  Unfortunately, it’s getting harder to get working capital lines from a bank, even when purchasing a business.  When conducting a cash flow budget for the intial months folloiwng the business purchase, it may be wise to factor invoices from the pool of accounts receivable that has been purchased.

The prospective purchaser of a business should carefully review the make up of the accounts receivable balance, whether deciding to use accounts receivable factoring or not.  He or she should look at the payment history of each account, the credit limit, and the trending of the charges.  Factoring the invoices with accounts that have solid credit and payment histories gives your new company an immediate working capital infusion.  Invoice factoring gives you the ability to turn a dormant asset to a productive one.

Need a working capital “shot in the arm”?  Click here for a downloadable application.