Since the early 1990’s the U.S. banking system has been virtually “off limits” to most start-up
and undercapitalized businesses. Likewise, government loan guarantee agencies typically
concentrate on secured real estate transactions to the detriment of companies providing
services and creating customer accounts receivable but whom do not necessarily have
“hard assets” to pledge.
As a consequence, many factoring companies have been formed to assist such “service companies”, generally by purchasing – on a temporary basis – their customer accounts receivable, and charging a discount fee for providing the needed capital.
Most service companies we come into contact with have limited professional staff that can source
and properly analyze factoring costs and terms. Regardless of terms, conditions and costs, the
service companies typically select a factoring company, and once becoming comfortable with the
funding and collection process refuse to change.
The principals of Lantana Capital Advisors work with many factoring firms, and understand how their funding process should work. When contacted by prospective clients, we evaluate the client’s funding needs, and because of our extensive contacts in the factoring industry, can generally obtain better rates for our clients than they are currently encountering. The result is an immediate cost savings and resultant improvement in company earnings.
As our clients grow, we also continue to analyze their asset base and can ultimately suggest putting in place a collaterialized receivables loan from specialty non-bank lenders. Likewise, as our clients obtain, or require hard assets (real estate and equipment), we can move them into those lending areas.
Take time to fill out the accompanying Service Inquiry, or Contact Us directly. We can make
a prompt assessment of your needs and our potential ability to solve a financial problem for you.