When I needed to boost the level of cash I had on hand in my business to meet payroll and other obligations, I used accounts receivable factoring to help. If you are a business owner, you know that you can have one event after another lead you to the brink of bankruptcy for an otherwise viable business model. Things just happen. I could either go out of business sending all of my employees home, or I could get cash to get me through the rough spot.
Many small businesses are offering valuable products and services to their customers, but most of the public is not aware that many small businesses are operating on slim margins. They are not making huge profits. They are paying their own bills and employees, keeping their services and products in demand of the consumers, and they are not keeping huge savings in the bank. They can’t. The low profits and other slim margins they operate on always keep them at the edge. A major expense may be survivable. Three or four of them in a quarter usually is not.