Smaller Businesses Struggle with Receivables

Smaller companies are preparing themselves for growth. According to this year’s Group CFO Survey, 95% of small and midsize manufacturers intend to invest in equipment this year, and 69% are more optimistic about their financial prospects. Executives of midsize companies, Deloitte also reported, intend to grow their companies this year by innovating, capturing higher-value customers, boosting revenue per customer, and selling abroad.

Source: Merrill DataSite

Firms Struggle with Receivables

All of this, however, is taking place in a less predictable environment. Amid ongoing macro-economic uncertainty, one serious concern for many smaller businesses is with their receivables. The CFO Journal reported recently that midsized companies are struggling to manage their receivables, with 47% of respondents saying that “larger companies have used their bargaining power to force them to accept slower payments.” For smaller companies, this can be a significant problem, impacting working capital and stalling expansion.

How US Capital Partners Can Help

Today, smaller businesses in this predicament actually have more financing options available to them than ever before, helping them mitigate prolonged collection periods. Getting the right financing help quickly in this situation can ensure that your business continues to have the working capital or growth capital it requires.

US Capital Partners focuses exclusively on providing debt and equity financing for small and lower middle market businesses, including companies that may be struggling with their receivables. The firm’s extensive knowledge in this sector size enables it to provide the best possible financing for these businesses.

Recently, for instance, US Capital Partners put in place a $2 million accounts receivable line of credit for Morgan Drexen, Inc., which provides integrated support systems to over 50 US law firms. US Capital Partners also secured a $500,000 accounts receivable line of credit for Model Home Interiors, Inc., a leading designer and decorator of award-winning model homes. In both cases, US Capital Partners looked at every aspect of the business to design optimal and custom financing solutions for its clients.

If you would like to know more about how your business can secure the funding it needs, email Jeffrey Sweeney, CEO and Managing Director, at or call
(415) 889-1010.