Category: Press Release

Nine-in-ten hiring businesses say finding qualified candidates is a challenge, while the cost of labor sees its greatest hike in 20 years.

HOUSTON, December 13, 2022 – Leading invoice funding company Charter Capital says small businesses are feeling especially squeezed by the current labor market. Between the record-breaking cost of labor hikes and challenges filling vacancies, employers are exploring new ways to address the strain. The topic is covered in depth in “15 Tips for Combatting Labor Shortages and Increased Labor Costs,” which is now live at CharCap.com.

Nine-in-ten businesses that are hiring say finding qualified candidates is a challenge, the report notes, drawing on data from Goldman Sachs. A net loss in people seeking employment is tied to increased numbers taking early retirement and reduced immigration during the pandemic, with some industries feeling more strain than others due to a reallocation of workers. Industries with the greatest number of unfilled job openings include financial activities, professional and business services, durable goods manufacturing, leisure and hospitality, and wholesale and retail trade, per U.S. Chamber of Commerce data.

 “Small businesses tend to have more difficulty filling their roles because they don’t always have an HR department, let alone a team dedicated to recruitment and creating competitive benefits packages,” explains Gregory Brown, Co-founder and Executive Manager at Charter Capital.

At the same time, the nation is experiencing its largest labor cost increase in 20 years, per Reuters. Although business owners may feel tempted to cut salaries to help cope with the strain, doing so only makes it harder to attract and retain talent, which Brown notes can harm business success in the long run. 

“Businesses that take care of their teams and use cost-cutting measures such as employee schedule optimization and automation fair better over time,” Brown contends. “Organizations can make themselves more appealing to jobseekers by offering perks that don’t necessarily increase costs as well. Flexible scheduling, hybrid work environments, and creating positive, inclusive cultures are prime examples.”

He says that businesses struggling to build a budget for recruitment or HR, and those that may need the occasional cash flow bump to cover payroll, can get help through invoice factoring. It accelerates payment on B2B invoices, so organizations are in a better position to handle vital expenses without taking on debt.

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

Millions of small businesses are risking it all by failing to set up an adequate emergency fund, new report shows.

HOUSTON, November 8, 2022 – Leading invoice funding company Charter Capital says millions of small businesses across America are shortchanging themselves and putting their companies at risk by failing to set up a proper emergency fund. Although able to address their daily needs, businesses in this situation are often unable to cope with unexpected lulls and emergencies, which can hinder long-term growth and ultimately result in closure. Full coverage of the situation can be found on “5 Practical Reasons to Build a Small Business Emergency Fund,” which is now live on charcap.com.

The company draws on research from JP Morgan that shows one in four small businesses has less than a 13-day cash reserve buffer. Those in low-wage or labor-intensive industries often fare worse than their counterparts, as it’s much harder for them to build cash reserves. Failing to create an emergency fund is especially risky, given that 82% of business failures are linked to cash flow issues, per National Federation of Independent Business (NFIB) research.

“Businesses can be perfectly able to manage day-to-day expenses and even be profitable, but still face difficulties when an emergency hits,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Even if the business can cover the emergency expense, it’s often at the cost of something else, such as marketing or seizing business opportunities, which can stall growth in the long run.”

Rosenthal says that small business owners in need of a quick cash injection will often accept terms that aren’t in the best interests of the company to make ends meet, which adds to the burden. Not only is money immediately being funneled away from growth opportunities, but the business is then paying exorbitant fees and interest that set it back further. 

“Businesses should have three to six months of expenses set aside in an emergency fund,” Rosenthal continues. “This should be separate from daily working capital, regular savings, and the business owner’s personal funds.”

Because it can take years to build up an adequate emergency fund, Rosenthal recommends that businesses also plan ahead and have a source of emergency funding ready. Invoice factoring, he says, is ideal because it accelerates cash flow and doesn’t require ongoing payments or going into debt.

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

Unable to make large equipment purchases to support growth, small businesses shift focus to alternative funding sources.

HOUSTON, October 11, 2022 – Leading invoice funding company Charter Capital says small businesses are recovering and eager to grow but are hitting a wall when it comes to obtaining heavy equipment financing. Often leveraged by businesses in construction, oil and gas, manufacturing, transportation, and other industries, heavy equipment financing is designed to make it easier to purchase expensive machinery or vehicles that are necessary for daily operations and growth. However, many seeking assistance are coming up short when approaching traditional lenders, creating a surge in interest in alternative funding options. Full coverage of the topic can be found in “Heavy Equipment Financing: A Beginner’s Guide to Getting Funding,” which is now live on charcap.com.

The company notes that purchasing heavy equipment is typically preferable over leasing when a business has strong cash flow, the equipment will be used to generate revenue, and the asset will be held for an extended period of time. With more business owners reporting they don’t qualify for traditional heavy equipment financing, that the amount offered is too low, or they can’t generate enough cash for a down payment, purchasing, however, often seems out of reach.

“One of the biggest challenges with specialty equipment is that lenders from outside the industry can’t always properly value the asset,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “When a lender thinks something is worth less than it actually is, they may offer a loan that’s not large enough to cover the cost or outright deny the business owner.”

Rosenthal says that businesses will sometimes go for an SBA loan, term loan, or line of credit instead, though strict requirements related to credit and time in business often eliminate these options for growing companies. With invoice factoring, they can accelerate cash flow enough to make a purchase, bridge a funding gap, or provide a stronger down payment. 

“Invoice factoring is a welcome relief for small businesses gearing up for growth,” Rosenthal continues. “We’ve seen an uptick in business owners leveraging factoring for heavy equipment purchases lately because it’s so versatile and doesn’t have the same rigid requirements that other funding sources do.” 

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

Roughly 70 percent of digital transformation initiatives fail, but savvy businesses can see returns by addressing common barriers.

HOUSTON, September 13, 2022 – Leading invoice funding company Charter Capital says digital transformation initiatives across small and midsize businesses are stalling out as a new epidemic of sorts takes hold. Known as “digital transformation fatigue,” and now impacting 43 percent of all businesses according to Avanade research, the term references the burnout felt by teams constantly under pressure to produce bottom-line results as they adopt newer digital technologies. Around 70 percent of initiatives today fail per McKinsey, taking with them the hope of increased profitability. Full coverage of the topic can be found in “Digital Transformation: Pros and Cons for Small Businesses,” which is now live on charcap.com.

As digital transformation reaches a high level of maturity, companies see a 43 percent gain in net profit margins over their peers per Deloitte. These gains are the columniation of company-wide improvements. Stronger team collaboration, improved customer experiences, removal of data silos, and greater efficiency are major contributors. 

“Businesses are often excited by the stats and invest in modernization,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “However, they hit unexpected barriers during implementation.”

He draws on Avanade’s research which shows that 46 percent of initiatives are impacted by hiring issues. Modernizing legacy systems and failure to integrate new technology with existing systems impact 35 and 40 percent of initiatives, respectively. 

“They have an idea of where they want to go and make that initial investment,” Rosenthal continues, “but initiatives stall when talent and integrations fall through. Because of these hurdles, they put off finalizing the initiative and ultimately don’t get the return they’re counting on.”

Rosenthal says it often comes down to cash. After the initial outlay, businesses are unprepared for the additional expenses to finalize their transformative project. Many are now turning to invoice factoring to move the needle. By unlocking cash trapped in unpaid B2B invoices, factoring helps businesses clear the last hurdles and start seeing the returns they hoped for.

Those interested in learning more about factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

As inflation and supply chain issues drive prices up, Main Street explores unconventional inventory funding solutions.

HOUSTON, August 9, 2022 – Leading invoice funding company Charter Capital says small businesses are exploring novel ways to fund their inventory purchases as record-breaking inflation rates and supply chain issues continue to drive costs up. The company examines the scope of the problem and potential solutions in “Top 4 Types of Inventory Financing for Small Businesses,” which is now live on charcap.com.

With business logistics costs rising 22 percent in 2021 per The Wall Street Journal, and continued strain in the first half of 2022, small businesses have been hit especially hard. Applications for funding to help meet operating expenses, a bracket that includes inventory and payroll, dominated in the latest reporting period per the Small Business Credit Survey. The report further notes that half of all businesses with a funding shortfall don’t apply. Weak business financials and overly strict lender requirements are the most-cited reasons for failure to apply despite need.

“It’s a difficult situation,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Small businesses, which are typically most vulnerable to inflation and supply chain disruptions, have been weathering the situation for so long that they’re at a breaking point.”

Rosenthal says that many have tried to absorb the increased costs to maintain customer relationships with the expectation that the economy and supply chain issues would calm. Now, they’re struggling to cover basic expenses, and traditional inventory funding sources, such as short-term loans and business lines of credit, are drying up as banks try to limit their risk.

“We do what we can to help,” continues Rosenthal. “Many small business owners have never heard of invoice factoring, let alone how it can help them fund inventory. When they realize how easy it is to qualify and that they can get cash for inventory right away, it’s a huge weight off their shoulders.”

Unlike other funding sources that create debt, invoice factoring is like a cash advance on unpaid invoices. The business is free to purchase inventory, cover payroll, and address other expenses. The advance is paid off when the business owner’s customer pays their invoice according to Rosenthal. He notes that Charter Capital has seen a surge of applicants from transportation, staffing, manufacturing, and other industries as a result.

Those interested in learning more about factoring may request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

More than a quarter of small business owners report that B2B payments are now coming in 20-30 days past due.

HOUSTON, July 11, 2022 – Leading invoice funding company Charter Capital says more doors on Main Street may soon be shuttered as late payments in the B2B sector surge. As reported by YouGov, around a quarter of small businesses are receiving payments 20-30 days after their due date. As most leverage net 30 payment terms, the average span from completing work or delivering goods to getting paid is about 60 days. Around one-third of those surveyed say the strain is putting their business at risk for closure. Full coverage of the topic is available in “Slow-Paying Clients: 5 Strategies for Dealing with a Difficult Accounts Payable Department,” which is now live on charcap.com.

While many business owners felt optimistic about the economy going into 2022, inflation quickly turned the tables. Reduced customer spending across non-essential services and goods as well as rising business costs are making it harder for small businesses to keep up with financial obligations, explains Charter Capital Co-Founder and Executive Manager Gregory Brown.

“It’s a vicious cycle,” Brown says. “Cash-strapped businesses hold off on paying their invoices to ensure they can buy supplies and cover payroll. Meanwhile, the company they’re not paying is doing the same.”

Brown notes that there are many ways businesses can improve their cash flow but addressing the root cause of the problem is essential. In this case, small business owners can speed up payments by applying a few tested strategies, such as having written customer credit policies and an airtight collections process.

“Business owners can still offer net 30 payment terms,” Brown continues, “but they should be thinking critically about who receives this type of in-house financing too. The same is true when a client can’t pay and wants a payment plan. It’s ok to be flexible, but the business should ensure the terms benefit the business, not just the customer.”

Brown says that invoice factoring is also helpful. Instead of waiting for payment, the business simply sends their B2B invoice to a factoring company for instant payment and the client pays the factoring company when payment is due. 

Those interested in learning more about factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

Facing a deficit of 80,000 truckers, the transportation industry takes aim at pay and policy.

HOUSTON, June 15, 2022 – Leading invoice funding company Charter Capital says the transportation industry is making moves to end the trucker shortage. As reported by the American Trucking Associations (ATA), the United States is presently short 80,000 truckers. The figure could climb as high as 160,000 by 2030 if left unchecked. Full coverage of the situation is available in “4 Ways the Transportation Industry is Addressing the Truck Driver Shortage,” which is now live on charcap.com.

Many factors are contributing to the shortage. More than half of it, per the National Transportation Institute (NTI), can be tied to retirement. As drivers age out of trucking, the industry is failing to attract younger drivers as it once did. Challenging working conditions and low pay are also cited. 

“Transportation companies are bumping up pay to attract and retain skilled truckers,” says Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “That helps individual companies persevere, but it hasn’t been enough to start attracting younger professionals to the field yet.”

Rosenthal points to initiatives across the country including the Safe Driver Apprenticeship Pilot Program (SDAP) from the Federal Motor Carrier Safety Administration (FMCSA), which may help the industry attract fresh talent. Individual states are taking action too. New York, for example, is enacting legislation to allow those age 18 and up the opportunity to earn a CDL Class A through a specialized training program. Previously, only those 21 and up could obtain the license. 

Even still, some industry experts contend the country is experiencing a “reallocation of drivers” more than a shortage, as truckers move away from large fleets to smaller companies or form their own firms. 

“We are seeing more small and midsize trucking companies applying for factoring,” Rosenthal notes. “In some cases, it’s owner/operators accelerating cash flow to cope with notoriously slow payments across the industry. Other times, it’s larger companies ensuring they can cover increased payroll expenses.”

Rosenthal explains that, with transportation factoring, companies can get paid as soon as a load is dropped off, so it’s easier to accept another load and grow. Through Charter Capital’s freight factoring program, companies can qualify for perks like fuel cards too.

Those interested in learning more about transportation factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

More small and midsize businesses are leveraging the alternative funding solution to operate more effectively.

HOUSTON, April 22, 2022 – Leading invoice funding company Charter Capital says more small and midsized businesses are choosing the funding solution with growth initiatives in mind. The company explores the concept in depth in “How Factoring Can Help You Run Your Business More Effectively,” which is now live on charcap.com.

As noted in the Forbes 2022 survey, and echoed by Deloitte’s Winter 2022 CEO Survey, businesses have big growth plans for this year, with many focusing their investments on technology that can help them serve more customers or improve workflows and processes. Enhancing customer and employee experiences and bolstering diversity and inclusion initiatives also rate high.

“More and more business owners are seeing invoice factoring as a tool to help them achieve their big picture objectives,” explains Charter Capital Co-Founder and Executive Manager Gregory Brown. “The value of the immediate working capital injection is still there, which can help with growth-related expenses, but they’re equally as excited by the opportunity to improve their processes and client experiences too.”

Brown says that factoring allows businesses to get immediate payment for their B2B invoices, so they’re able to offer their clients more relaxed payment terms and focus on building relationships instead of chasing payments. Oftentimes, this opens doors for clients to place larger or more frequent orders, which helps the business grow even more. Factoring companies like Charter Capital also help their clients by providing customer credit checks, which mitigates some risk when taking on new accounts or accepting larger orders from existing customers.

“When business owners are freed from administrative burdens and cash flow crunches, they have more time and energy to focus on their daily operations and their growth initiatives,” Brown continues. “Being able to do this without taking on debt or unnecessary risk is a huge relief as well.”

He says that some businesses leverage invoice factoring on a recurring basis, while others simply tap into it as needed. Because factoring is flexible, it works in both situations equally well. It also differs from bank loans in that most businesses with B2B invoices will qualify, and funding can be provided as soon as the day an invoice is submitted. 

Those interested in learning more about invoice factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

With inflation skyrocketing to a 40-year record high, Main Street is turning to price hikes and other measures to cope.

HOUSTON, March 22, 2022 – Leading invoice funding company Charter Capital says small business owners are struggling to keep up with record-high inflation rates. Feeling little choice but to pass higher costs onto consumers, many continue raising prices to cover their costs. “7 Proven Ways to Protect Your Small Business from Inflation,” a guide that explores the mechanics behind the situation and offers business owners methods to keep their companies strong, is now live on charcap.com.

As reported by the Bureau of Labor Statistics (BLS) in early March, the Consumer Price Index (CPI) rose 7.9% over 12 months, marking the largest inflation rate since 1982. Gasoline, shelter, and food saw the largest hikes. Energy, as a whole, climbed 25.6% over last year.

“Small businesses, especially, are feeling the strain,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “Between the pandemic and supply chain issues, the past couple of years have been tough. Most expected some relief in 2022, but they’re back in the problem-solving mode now with the inflation hikes.”

Rosenthal says Charter Capital is seeing an uptick in invoice factoring applications in recent months. While some are tapping into funding right away, others are simply becoming established to make sure they have access to cash if conditions continue.

“The rising energy costs are universal, and there’s a bit of concern that energy increases alone will be more than some can bear without mitigation measures,” Rosenthal continues. “But industries like manufacturing and retail are still coping with supply chain issues too.”

Rosenthal contends there are many ways business owners can protect their businesses in spite of current conditions, though. Cost-cutting measures, such as renegotiating with vendors and landlords, as well as reducing discretionary spending, are good first steps. Businesses that are in a position to conduct energy audits and address opportunities will see relief as well.

Other solutions include investing in growth and promptly collecting client payments, though Rosenthal acknowledges it may become harder for businesses to collect because companies are starting to triage their payables to cope with economic challenges again. Invoice factoring, he says, can help address all these areas by allowing companies to outsource their collections processes and obtain working capital funding on B2B invoices. 

Those interested in learning more about invoice factoring are encouraged to request a complimentary quote by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.

Experts say business leaders returning to fundamentals of relationship-building and people-focused behaviors to outperform peers this year and beyond.

HOUSTON, February 23, 2022 – Leading invoice funding company Charter Capital says 2022 will be a people-focused year for successful business leaders. While recent times have required significant shifts to cope with supply chain issues and changes to consumer behavior brought on by COVID and the uncertain economy, business leaders that find success going forward will do so through reconnecting with the humanistic aspects of leadership. The company’s article, “7 Ways Business Leaders Can Prepare for Success in 2022,” outlines specific steps stakeholders can take to ensure a bountiful year and is now live on charcap.com.

Known as the “Great Resignation,” last year marked a period in which roughly a quarter of employees quit their jobs per CNBC. People are re-evaluating what they want from their careers and preferences have shifted more toward concerns like work-life balance and flexibility. To hold on to top talent, businesses must meet these new needs and create better internal development programs to cultivate stronger employee relationships.

“Business leaders must still be ready to pivot,” says Charter Capital Co-Founder and Executive Manager Gregory Brown. “New consumer behaviors are still taking shape, and opportunities are constantly evolving. However, those finding success right now are making a point of refocusing on the people who make or break their business—employees, vendors, and customers alike.”

Brown notes that consumer loyalty has been shaken too. He draws on data from Forrester that concludes more than 80% of brands are boosting their investment in loyalty by 5% or more this year, but also says he sees similar trends within their own customer base.

“It’s often little friction points in the customer experience that are cause for concern today,” Brown expands. “The more businesses do to make it easier for customers to do business with them, the better they’re performing. Simple things, like improving the payment process or making sure customer support is available and can resolve concerns on the first try are huge.”

Brown says that businesses can address cash flow concerns and improve relationships through invoice factoring. “By accelerating payments, leaders are less stressed and have the cash to put toward critical employee programs, plus can provide their clients with better service.”

Those interested in learning more about invoice factoring are encouraged to request a free consultation by calling 1-877-960-1818 or visiting charcap.com.

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 or call 1-877-960-1818.