PRESS RELEASE: Factoring Company Funds Small Businesses Crucial to Supply Chain

Charter Capital is offering non-loan working capital financing through an accounts receivable factoring program supporting a wider range of small business suppliers than those currently approved by Wal-Mart’s “Supplier Alliance Program.”

November 19, 2009 – Taking its cue from big bank endorsement of Wal-Mart’s “Supplier Alliance Program”, Charter Capital (a specialized provider of Factoring Services) has positioned itself to fund advances to an even wider range of suppliers challenged by the need to extend ever more generous payment terms to their customers like Wal-Mart, Costco and others.
Due to the increasing demand for business credit combined with the sharp decline in the availability of bank loans and increasingly delayed payment remittance from customers, Charter Capital has become a preferred alternative source of funds to small businesses with immediate working capital needs.
For a nominal discount fee, Charter Capital services the funding needs of a wide variety of small to mid-sized businesses (SMBs). Most SMBs at the heart of the US economic recovery still face significant cash flow challenges that Charter Capital is well prepared to meet.
Factoring is an often-overlooked choice for growing businesses. This form of financing (also known as Accounts Receivable Financing) is a financial tool that allows businesses to capitalize on the power of their outstanding invoices. Factoring can be a valuable mechanism to turn a business’ invoices into immediate cash, enabling them to fund business operations.
Small businesses that need an immediate cash stimulus can turn to Charter Capital for an accounts receivable factoring program fits their needs. This factoring company is a direct source of funds and does not involve any third-party lenders.

About Charter Capital

Charter Capital is recognized as one of the hardest working independent providers of accounts receivable financing, invoice factoring and cash flow management solutions for small to mid-sized businesses. They offer a complete line of asset based funding and related financial services. In today's "credit crunch" economy, Charter Capital can be your alternative source for business financing.
Headquartered in Houston, Texas, Charter Capital provides accounts receivable financing and asset-based lending for major industries including freight and transportation, consulting firms, service providers, staffing firms, distributors and manufacturers, medical service providers.
To learn more about accounts receivable factoring call Charter Capital at 1-877-960-1818.

Economy Recovering – Bank Loans Still Scarce

With FDIC reserves plunging to $10.4 billion from $45 billion last fall and the number of troubled banks rising to 416 from 305 in the first quarter, more pressure is being put on banks to “shape up”.

Although the economy is showing clear signs of recovery, the banking sector may not rebound any time soon. It’s possible that the continued problems in the banking industry will substantially outlast the recession, resulting in a significantly suppressed availability of credit in a recovering economy.

With many banks struggling to keep their doors open, small business owners seeking financing, who are already finding limited options, are faced with desperate cash flow issues. As businesses attempt to recover along with the economy, they need financing solutions now. It is critical that businesses acquire a funding source that is readily available and dependable.

Accounts Receivable Financing is an often overlooked choice for growing businesses. This form of financing (also known as Factoring), is a financial tool that allows businesses to capitalize on the power of their outstanding invoices. Factoring is a valuable mechanism to turn a business’ invoices into immediate cash, enabling them to fund business operations.

It is not widely understood, but a factoring firm provides funds to its clients based upon its clients’ accounts receivable. Most invoices billed to credit worthy customers can qualify. Banks, on the other hand, must consider more stringent criteria before qualifying a borrower for any type of funding. In most cases, when considering assisting a business based strictly upon its accounts receivable, factoring companies can provide funds when a commercial bank cannot.

The Credit Crunch Is Still On

Just as lenders were starting to ease up a bit after some earnings surprises among companies and economic data that wasn’t as bad as it was earlier this year, an S&P report has indicated that $695 billion in debt will come due between now and 2014. This is sure to curtail lending while companies with upcoming principal payments face a difficult problem or the possibility of default.

In a cruel way, the credit crunch has been pummeling those that are least able to cope with its effects. Small businesses have been hit incredibly hard by the lack of readily available funds from banks in order to stay operational. While many large companies have squeezed their suppliers by paying their invoices later in order to stretch their cash flow, companies providing goods on credit have no come back if the company they are supplying goes under.

Even in a credit crunch economy, there are many ways to maintain a positive cash flow when dealing with Accounts Receivable issues. One increasingly popular way is called Accounts Receivable Financing (also known as Invoice Factoring). This financial tool allows businesses to capitalize on the power of their outstanding invoices. This form of financing is a valuable mechanism to turn accounts receivable into immediate cash, enabling businesses to fund their operations.

It’s not widely known, but most businesses can rise immediate funds for their accounts receivable by simply engaging the factoring services of firms such as Charter Capital. Commercial banks do not consider loans based solely on a borrower's accounts receivable, but invoice factoring firms mainly consider the accuracy of the accounts receivable when deciding whether or not to fund its clients. In most cases, a factoring provider can provide funds when a commercial bank cannot.

Dealing with an uncertain economy is never easy, especially for small businesses. Unlike their larger counterparts, small businesses rarely have the resources to monitor and take corrective action for every trend and issue. Even those owners who have weathered numerous business cycles may be faced with new circumstances that confound their otherwise successful instincts and knowledge. But a predictable funding source like factoring can certainly ease the pain associated with an uncertain economy.

Survey: 2009 Expected to be Rough For Entrepreneurs

According to a recent survey by the National Association for the Self-Employed (NASE), small businesses and many entrepreneurs are generally pessimistic about 2009.

In the survey, half of the respondents are already feeling the effects of the slow economy, and 43% indicated that this is the worst downturn that they've experienced.

Most of those surveyed indicated that they would use their personal savings to shore up their business, scale back the purchase of inventory or equipment, lower prices, or cut pay.

"Cash is king," as they say. Since quick access to cash is critical for small business, and access to credit is scarce at best, many business owners feel that cutting back or tapping into personal savings will provide a much-needed boost to cash flow.

While most of American small and mid-sized businesses continue to struggle with the current economic environment, there is a silver lining. As we noted in a previous article "What You Need to Know About Invoice Factoring", business owners have a little-known alternative choice to a traditional bank loan, line of credit or any of the cash flow boosting mechanisms listed above.

Experts agree that, despite the economic slowdown, entrepreneurs can start and even grow their business with the right tools.

While there is no crystal ball that accurately predicts the future, small business owners can take steps that will help their enterprises endure the worst of times, and position them for success when conditions inevitably improve.

Press Release: Houston Firm Offers Loan Alternative for Small Business Bankers

Charter Capital, a Houston based specialty financial services company, announced today that in light of the capital constraints faced by many lenders today it is doubling its capacity to provide accounts receivable funding to small businesses.

Houston, TX October 24, 2008 -- Overextended on credit lines that often were based on home equity, small businesses are increasingly hard-pressed to service debt in an atmosphere of slowing sales. “On top of limiting loans in order to maintain capital requirements, small business bankers have been pressed to tighten credit standards due to general uncertainties associated with a slowing economy” says Joel Rosenthal, Managing Director. "Many small businesses saw the handwriting on the wall months ago and were quick to warm up to the concept of obtaining funding from alternative sources such as Charter Capital.” Mr. Rosenthal suggests that bankers appreciate the synergies gained by referring “difficult to qualify” borrowers to Charter Capital for funding and related factoring services. “While Charter Capital is charged with providing funding to the business through its factoring services, incentives are given to the business referral to maintain its checking and depository business at the referring bank”.

Charter Capital is not a bank or depository. Rather, it is a specialized finance company structured to provide funding and accounts receivable management services to its clients via a process commonly referred to as factoring. Charter Capital's FactorLine services are geared to accommodate small businesses that have difficulty qualifying for conventional commercial bank loans. FactorLine services are intended to be complementary to traditional commercial banking services, leaving the bank free to concentrate on satisfying other relationship-driven services demanded by small businesses, services such as checking, payroll, and personal banking.

Headquartered in Houston, Texas, Charter Capital provides working capital funding via a process commonly referred to as "factoring of accounts receivable", asset-based lending, and cash flow solutions for businesses nation-wide including: freight delivery and transportation, repair, maintenance and inspection service providers, consulting firms, most other service providers, staffing firms, distributors, wholesalers and manufacturers. Charter Capital also serves business in Dallas, TX; San Antonio, TX; Austin, TX; Atlanta, GA; Albuquerque, NM; Phoenix, AZ; Nashville, TN; Indianapolis, IN; Oklahoma City, OK; and cities nationwide.