Sandstone Financial is a nationwide small business funding service and a leader in helping young and growing businesses including start-ups, minority, and women-owned companies to meet cash flow needs and provide for future growth.
We are able to provide fast and reliable cash flow solutions to manufacturers, wholesalers, distributors, service companies and a host of other industries through creative funding techniques that will enable you to extend terms to new and existing customers to sell more, deliver more, and improve your bottom line.
At Sandstone Financial we are committed to helping young and growing companies discover and take advantage of hidden and untapped capital potential thus empowering you to implement plans and strategies for growth.
What is Factoring?
Factoring is the sale of your company’s outstanding invoices at a discount from their face value. Your company gets instant cash from the factoring company without having to wait for payment from the customer. The factoring company gets back the money it paid to your company plus its profit when your customer makes payment on the invoice.
Factoring gives your company the cash it needs to use as it wishes for such things as:
- Meeting payroll needs
- Paying rent on facilities and equipment
- Purchasing inventory and supplies
- Upgrading equipment and machinery
- Investing in growth opportunities
- Expanding into new markets
How Factoring Works.
Companies of all sizes experience cash flow shortages, even during periods of business growth. It is common for a company to be very busy with new orders, yet short of money to meet current operating costs. Unpaid invoices can cripple a company. It is important to get ahead of the costly mistakes that leave a company in a bind. Smart factoring is benefit all businesses. It is no longer considered a form of weakness for a company and with the many programs to keep your company anonymous your brand and your customer can both be protected. Large companies can withstand periods when accounts payable exceed receivables by tapping into cash reserves. Small and medium-sized companies or startups may not sufficient cash reserves. For these businesses, factoring their outstanding invoices may be a smart solution.
Is Factoring Right for Your Company?
Your company may be helped by factoring services if it is experiencing any of the many challenges that confront new or growing businesses, including:
- Struggling to meet weekly payroll and operating expenses
- Being unable to take advantage of growth opportunities requiring capital investment
- Having difficulty full filling current orders due to materials or staffing requirements
- Needing capital for training personnel and upgrading equipment to keep pace with changing technology
- Being unable to expand into new markets or products due to capital limitation
- Having company principals with poor credit histories
- Being a new company with an inadequate history of earnings or sales
What are the Benefits of Factoring for Your Company?
Factoring offers your company immediate cash for your invoices without the burdening your bottom line with repayment. A company with cash flow needs does not want to add another monthly payment to its accounts payable nor can it afford to go through the paperwork, collateral requirements and delays associated with bank loans.