Factoring with Commonwealth Capital
We work with companies from startups to those with $15 million in annual sales. Our clients are typically generating $10,000 to $500,000 per month in accounts receivable.
Initial setup can be as quick as 48–72 hours, but generally takes five to ten business day
Once we have set up your factoring facility, we can get you cash quickly. Depending on the method, funds typically are in your account the next business day. However, that can be expedited to the same day funding if need be.
Our advance rates are based upon a number of factors. Depending on the industry, we advance from 75 to 90 percent of the invoice.
There are a few key differences between factoring and a business loan:
- Factoring involves three parties (you, your customer, and Commonwealth) not two as in banking.
- Factoring typically provides more cash per invoice.
- Factoring typically generates cash within a day of invoicing.
- Factoring does not require covenants, unlike bank loans.
We’ve worked with the Minnesota business community since 1975 and have earned a reputation for being straightforward, honest, and passionate about helping small businesses. And, as a family business, you get personal attention from decision makers.
Factoring focuses on the creditworthiness of your customers instead of your business. By analyzing your customers ability to pay, we are able to factor your accounts receivable and turn them in to cash. So, whether your business is growing beyond their bank’s willingness to lend or maybe you have hit a bump in the road, you can maintain the working capital you need.
We are also offering private capital, which means we can be flexible, and we are not constrained by banking regulations.
We’ll tell you right away, and we’ll point you in the direction of someone who might be able to help. You’ll have a response to your initial inquiry in 48 hours – we won’t keep you in suspense waiting for an answer. We pride ourselves on a quick response to prospective and existing clients.
No matter the banking environment, it can be tough to get a business loan with bad credit. When starting a new business, your personal credit score is your business credit score. As your business grows and establishes more of a commercial credit profile, banks still put a very high value on your personal credit score. This makes it hard to get a business loan with bad credit.
Commonwealth Capital provides invoice financing to businesses with poor credit. Invoice financing, or factoring, is a flexible alternative to a business loan.
An owner’s bad personal credit score will often make a business unbankable, despite the business’s track record. But we understand people go through rough patches. At Commonwealth Capital, we do not rely on traditional credit scores or models. We do not turndown businesses simply because the owner has bad credit.
By providing accounts receivable factoring instead of a loan, we are able to work with businesses with bad credit. We focus on the quality of your invoices and your customers. This focus on the quality of the accounts receivable enables Commonwealth Capital to put cash in our clients’ bank accounts immediately upon invoicing.
Getting a small business loan is rarely a fast process. Business loans typically take a long time to be approved because of banks’ organizational structure. These structures, which are designed to reduce risk, can cause bureaucracies to form. For those that need a small business loan fast, any delay in finding that financing can choke a business’s growth as they wait for a loan to be approved.
At Commonwealth Capital, we understand that many businesses can be blindsided by a need for cash. Businesses can’t wait weeks or months to secure a small business loan. By providing invoice factoring instead of a loan, we are able to move quickly. Focusing on Minnesota and the Upper Midwest allows us to provide working capital fast because we know the local economy. Our business is structured to avoid bureaucracy and get clients set up and funded quickly. We have funded clients in as few as three days and we commonly have new clients set up within a week.
Our prospects benefit by knowing where they are in our transparent approval process, aided by easy access to decision makers. If we are unable to fund a business, we let them know quickly so they aren’t waiting around for a deal that can’t be put together. When you need working capital fast, you can trust Commonwealth Capital to get you cash.