Ozarks Capital Funding

The meltdown of the credit markets has created a scramble for short term working capital. Banks are in a defensive mode and are leery of loaning money to many credit-worthy customers, much less those who are deemed marginal. Some say this is the worst financial condition since the Great Depression. That may be debatable, but most people agree we’re in very rough times. Factoring invoices can provide relief.

We’ve gone through tight credit markets in the past, and it always cycles back around. Invoice factoring can play a major role in bridging the gap between the time when banks are protecting assets and when things start to loosen up (probably not until late 2009). Qualifying for factoring requires companies to do business with credit-worthy customers. In other words, companies who are having cash flow troubles because of the current recession can get the capital they need to survive this troubling period. In addition, an accounts receivable factoring relationship can be set up quickly, making much-needed funds flow through the economy.