As an alternative or accompaniment to government aid programs and bank loans, the Fund provides invoice factoring at no charge for initial services.
HOUSTON, March 22, 2021 – Leading factoring company Charter Capital recently announced the creation of a $10 million working capital Fund for small B2B businesses. The Fund will be disbursed on a first-come, first-served basis via invoice factoring at no charge for the company’s initial services to qualified businesses. By accelerating B2B accounts receivable payments and unlocking working capital at a reduced cost, the company hopes to help those hit hardest by the pandemic. Businesses interested in applying can do so at chartercapitalusa.com.
The news comes on the heels of an Atradius release indicating late payments are up 25 percent year-on-year. Without a cash flow accelerant such as factoring, businesses may lack the working capital to continue operations. Factoring further helps businesses by increasing access to cash without taking on debt and serves as a flexible funding solution with an easy qualification process.
Late payments have posed issues for B2B businesses for some time. However, additional delays due to the economy and limited credit availability are proving especially problematic today. An estimated nine million small businesses report being at risk for closure this year per the latest Federal Reserve survey. Industries such as transportation, manufacturing, oil and gas, and services, all of which routinely leverage factoring, are also presently experiencing higher payment delinquency rates and challenges securing credit. These and similar industries are expected to benefit most from the $10 million Charter Capital Fund.
“Small B2B businesses have been underserved by traditional lenders for some time,” explains Charter Capital Co-Founder and Executive Manager Joel Rosenthal. “Many held hope that government programs would keep them afloat during the pandemic, but relief hasn’t materialized in a meaningful way, and businesses are closing every day while they wait.”
In general, factoring is an ideal solution for businesses facing challenges like these because the approval process is quick, most B2B businesses qualify, and funding is fast, Rosenthal notes. However, Charter Capital’s program is unique under the Fund because the charge for initial services is waived, and there’s no obligation to continue factoring after the term concludes. Small business owners can tap into the program, pay nothing to secure a portion of the $10 million Fund, and use their factoring cash to cover anything they wish, from ongoing expenses like payroll to things like purchasing PPE or adapting their business to meet social distancing guidelines.
“We’re proud to play a role in the health of small businesses, especially at a time when so many are struggling,” Rosenthal says.
Participation in the program is subject to Charter Capital’s terms and conditions. Businesses interested in learning more or applying are encouraged to visit chartercapitalusa.com to request a quote.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com.
