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Discussion Starter · #1 ·
Does anyone use factoring to help cover the ups and downs of cash flow? If you do use it, who would you recommend?

We have a large job coming up that will not pay for 30-60 days after completion. Hopefully, factoring can help us out, but I really don't know.... Just for completeness, we can probably make it thru, but when we took on this job, we had plenty of other work to help our cash flow out. Now, not so much...

anyone?

dale
 

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Structural Engineer
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513 Posts
Best way to get hooked into that line of financing is to talk to some local accounting firms and financial planners, and ask them if they know anyone. If you strike out there, do a google search for a local microlender. The microlender might not do it, but the people on their board would more than likely know some folks that do that. In fact, the microlender might be a better place to start.
 

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MyOnlineToolbox cofounder
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1,074 Posts
You better have your books in solid order with great credit history

The biggest player in the factoring industry is having MASSIVE financial troubles http://money.cnn.com/2009/07/24/news/companies/CIT.reut/index.htm?postversion=2009072410

The industry is beginning a consolidation just like what occured in all the other credit markets, but the factoring side is just beginning.
Sure, this may be an option for you, but I will bet that whomever you approach is going to want to see rock-solid accounting and a more than stellar credit history, especially after they learn about the industry we are in.

Brian
 
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