48 Factoring Inc. Small Business Funding Blog

“My revenue more than doubled in a year’s time, largely in part to funding from 48 Factoring.”  Angel Pedraza, owner, Real-Time Delivery & Services LLC.

Building a successful moving and delivery company comes with a lot of upfront expenses, like costly insurance and equipment.  After being turned away by some traditional banks due to the ebbs and flows of a business that slows down in the winter, Angel found an angel.  An angel of funding, that is. 48 Factoring provided Angel with the working capital that he used to secure the proper insurance he needed to run his operation.


Once he completed paying off the first round, he secured a new capital funding arrangement with 48 Factoring. With that additional money, Angel purchased a truck for his business.  Owning equipment meant avoiding costly truck rental or leasing fees, which resulted in doubling his yearly gross revenue.

Real-Time Delivery & Services LLC.is a small moving, courier and delivery company with a big reputation for excellent, reliable service.  They have a 5-star rating on Yelp, with customers saying things like, “They’re really as good as everyone says” and “Wow - a great team!!! From the owner to every employee they care about what they're doing.”

“There are peaks and valleys in the moving business that most banks don’t understand.  They look at a set of numbers, such as your credit score or balance sheet, and they turn you away- and in the process- can make you feel demoralized and disrespected,” said Angel, “48 Factoring didn’t shut the door on me.  They understood that to make money, my business needed access to money.”

Angel heard about 48 Factoring and reached out to them.  After a few phone conversations, Angel sat down in person with a 48 Factoring representative to ask questions about the process and if this could be the right solution to his funding needs.  After an in depth discussion where questions were thoroughly asked and answered on both sides, Angel felt confident that 48 Factoring could help him with his pressing financial needs, such as paying for insurance and equipment, as well as his long-term working capital needs for his growing business.  Angel knew that he had found a trusted source for those times when he needed access to additional funds.

“Once the paperwork was completed, the process was very quick and easy,” said Angel.  “48 Factoring treated me with the utmost respect, and I sincerely appreciated being treated this way.  It made me feel very good.”

One of Angel’s favorite things about 48 Factoring was the payment system. 48 Factoring securely collects a fixed amount daily via the ACH system directly from the client’s bank account. They work with the client during the closing process to arrive at a mutually agreeable daily amount.

“I don’t have to try and remember- did I write a check this month?  They take the fees directly out of my bank account.  It makes the entire process so easy.” Angel commented.

Just recently, Angel had some mechanical issues with his truck. 48 Factoring was able to help him out “in a pinch”.  The additional funding he secured through this specific transaction allowed him to get the truck repaired quickly so he could continue to do business.

Angel said that the most beneficial aspect of working with 48 Factoring is the peace of mind it gives him.  He appreciates being treated as a respected, trusted business partner.

Real-Time Delivery & Services LLC. is located in Philadelphia’s Delaware Valley.  For more information visit www.realtimedeliveryandservices.com.

What to Do Before Seeking Financing

You aren’t sure how much longer your business can hold on without financial help. There is just one way out, and that’s financing. Before you move forward with financing, you need to make sure that everything is in order. That way, you will be more likely to get approved. What you do to prepare depends on the type of financing you’re seeking.


Traditional Financing
If you intend to get traditional financing, you’ll need to jump through some hoops. Before you go to the bank or another traditional lender, pay down your credit and work to raise your credit score. You also might need to get some collateral in place to use to secure the loan. Your collateral can be in the form of your home, business, or even a vehicle. Lenders take different forms of collateral, so talk to your specific lender about what he or she will take.

Non-Traditional Financing
Just as the name suggests, non-traditional financing is quite a bit different. If you go with factoring or another type of non-traditional financing, your credit score doesn’t matter, so you don’t need to worry about paying down your debt. You also don’t have to secure the loan. Instead, you need to make sure that you qualify. You have to be in business for at least a year. In addition, many factoring companies will only lend you the money if you made at least $120,000 in the last year. If you didn’t make that much, you’ll need to bump up your income before applying. Once you do, you’ll be ready to apply for factoring.

No matter what type of financing you apply for, you do need to prepare. Take some time to get ready and then move forward with financing. Then, once you finally get your money, you can breathe a sigh of relief. You’ll finally have the money you need to run your business.

How the Internet Changed Financing

It seems like the Internet has changed everything. It’s changed the way you shop, read the news, and watch movies. It’s also changed the world of financing. In the past, you had to go into the bank to get a loan. Now, though, you don’t need to leave the house to get money. Of course, that’s only part of the way that the Internet has changed financing.


Get Money Faster
The Internet has changed the amount of time it takes to secure funds. Before the Internet, you had to wait weeks or months to get money. That was not only frustrating, but it could be harmful to your business as well. Now, you can get money in as little as two days online. That is great news if you need money quickly.

Faster Application Process
Applying for a loan used to be a long process. You would have to gather up a bunch of documents and go to the bank, where you would wait in line. Finally, someone would call your name so you could sit in an office for an hour while he or she typed on a computer. The Internet has changed that. You don’t have to wait anymore. You just go on your computer and type out a short form. You might have to scan some documents, but that’s as hard as it gets. The Internet has made it much faster to apply for a loan.

More Options
The biggest change has come in the form of choices. In the past, you had the bank and that was it. If you couldn’t get approved for a loan through the bank, you were out of options. Now, you have factoring companies and other options as well. These additional options increase your chances of getting financing.

The Internet has taken the stress out of small business financing. Whether you have never applied for financing before or you have relied on loans from time to time, you will be surprised by how easy financing can be when you go online.

Do You Qualify for Factoring?

Your small business is hurting for financing, and you have heard some good things about factoring. Your friends have told you that it is easy to qualify for, but you've been burned in the past and you aren't sure if you should take the plunge. Take a minute to find out if you qualify for factoring. Then, you'll know if this is a good option for your small business.


Time in Business
First, it's important to understand that only established businesses qualify for factoring. Most companies won't provide you with a factoring contract unless you have been in business for at least a year. However, once you hit that year mark, you are good to go. You don’t need to wait any longer to apply for factoring.

Minimum Revenue
There is also a revenue requirement when applying for favoring. Companies often require that you make at least $120,000 in the last 12 months. That indicates that you will have enough money coming in from customers to honor the factoring contract.

Required Documents
You also need some documents to qualify for a factoring agreement. These are common documents that you probably have around your house. You'll just need your social security number, business tax ID number, and bank account information. You'll also need to fill out some forms for the factoring company before you can get your money. The information is relatively basic.

If you do qualify, you can get your money quickly when you go with a factoring company. You'll receive a decision in a couple of days. Then, you can plan for your company's future. For many people, the money means they can stay in business. They can buy equipment or pay their employees. They can also use it to get much-needed inventory or pay the rent on the building. Whatever the case may be, it helps them run a successful company.

Common Small Business Financing Mistakes

Financing is stressful enough without making mistakes. The idea of making mistakes can be too much to take. Unfortunately, most people make financing mistakes from time to time. Once you learn what the common mistakes are, though, you can avoid them in the future.


Failing to Understand That Time is Money
Banks often hold the purse strings pretty tight. They might take a full two weeks to review your application and then another 60 to 120 days to give you the money. If you need those funds to increase your profits, you're losing money by not getting your loan. Instead of making this mistake, look for other methods of financing. You can't afford to lose money while you wait for a bank to come through for you. There are lots of other options out there, so don't wait on the bank.

Know Your Real Interest Rate
Failing to understand the real interest rate is one of the biggest financing mistakes that small business owners make. You have to calculate your interest rate based on the amortized amount to get your real interest rate. If you fail to do that, you'll think you're paying a lot less interest than you really are. That will make you think that a lender is offering a better deal than you're actually getting. Take the time to calculate the real rate so you'll have a better understanding of what you're paying.

Failing to Sign a Contract When Borrowing from Friends and Family
First, don't borrow from friends and family. It's a good way to lose relationships. Now, let's assume you've ignored that advice and borrowed from people who are close to you. You need to treat it like any other loan. That means you need to create a contract and sign on the dotted line. Then, make every loan payment by the due date.

If you can avoid these financing mistakes, you will be on your way to running an economically responsible business. That is the key to staying in business from one year to the next.

Small Business Financing Scams

No one wants to get scammed when seeking financing for a small business, but it happens every day. The desire for financing often overrides people's better judgment and they fall victim to scams. Check out some of the most common scams so you can avoid them.


Advance Fee Scam
The advance fee scam is one of the most common small business financing scams out there. A fake lender asks for a processing fee in order to process the loan. The fee is often thousands of dollars. Once you pay the fee, you'll never hear from the scammer again. If someone asks you for money before giving you money, run away as fast as you can.

Equipment Lease Scam
If you need financing for equipment, you might fall victim to the equipment lease scam. These scammers seek out people who can't afford new equipment. They offer to rent them the equipment at a low price, and all on credit. You can get the rental, even if your credit isn't great. There's just one catch. You have to send in the first and last month's rent before the company will release the equipment. Just don't expect to hear back from the company after you send in the money.

Phishing Scams
Some criminals also try to get small business owners' personal information so they can steal their identities. They call or send emails and ask them for personal details. They make the owners think they are applying for loans, when in reality, the criminals are stealing the information.
Always go with a trusted lender when borrowing money. That way, you don’t have to worry about falling victim to a scam. Then, you can get your money and use it to help your business instead of spending your days and nights fighting to get your money back.

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