The South Florida region is entrepreneurial in nature and has many self-employed individuals, transportation companies, technology companies, restaurant suppliers, and service businesses. The area also has a heavy concentration of companies that import and export products from Latin American countries. Many of these companies are located in Miami-Dade county, the economic center of the region.
Few financing options
Although the region has a large number of banks, most of them focus on real estate rather than on business financing. Banks that do focus on business financing have developed stringent lending standards due to the lagging effects of the burst of the housing bubble.
Most banks that finance companies finance only those businesses with strong assets, healthy balance sheets, long track records of profitability, and good cash flow. They examine your collateral closely and work only with companies who can pay back the loan or line of credit with their existing cash flow. Consequently, many South Florida companies need to be creative to finance their businesses.
Do you work with commercial clients? You can finance invoices.
Many South Florida businesses focus on commercial sales: they sell their products and services to other companies, who often pay invoices in 30 to 60 days. These businesses must pay all their operating expenses while waiting up to two months for clients to pay. Few small companies can afford to wait this long for payment while trying to grow the business. This payment delay often causes severe cash flow problems.
One way to solve this problem is to finance invoices due from large, creditworthy companies. With invoice financing, a factoring company purchases your invoices and provides you with an advance for them. The transaction concludes once your clients pay their invoice in full. In Florida, invoice financing has been gaining popularity as a solution to this cash flow problem because it’s easier to get than bank financing.
Finance import transactions from Latin America with purchase order funding
As an international trade hub, Miami is home to many companies that import goods from South America and resell them to US companies. This type of transaction has unique challenges. Often, a commercial client issues a purchase order to an importer. The importer, in turn, issues a purchase order to the South American supplier.
The problem is that most foreign suppliers require payment before shipping their goods. This requirement can create a problem if a small company receives a large purchase order that exceeds its financial capabilities.
If you have this problem, you can finance your import company with purchase order financing. This solution provides financing to cover supplier expenses. Unlike conventional solutions, purchase order funding companies use your orders from creditworthy clients as the main collateral for the transaction. The transaction concludes once your client receives and pays for the goods.
Invoice financing and purchase order funding are transactional facilities: their limits are determined by the size of the transaction (or invoice), the credit quality of your commercial customers, and your ability to execute your business plan — making them ideal options for entrepreneurs who need working capital to grow their companies.
We are a local company
We are located in the heart of Miami (at Brickell) and offer competitive plans. For a quote or more information, please call as at (877) 300 3258.