US Capital Partners Supplies the Working Capital Your Business Needs When Big Customers Are Slow to Pay
As commercial customers continue to hoard cash and take longer to pay invoices, US Capital Partners is providing smaller businesses with the working capital they need.
Many larger companies are hoarding cash to bolster their working capital. In doing so, they are taking longer to pay their bills:
- The Wall Street Journal reported that many small-business owners are seeing payments from larger customers stretch from 30 days to 60 and even 90 days after an invoice is issued.
- Pepperdine University reported this month that 36% of small and lower middle market businesses have been receiving slower payments than three months ago.
- According to a survey by the CFO Journal, 47% of businesses reported that “larger companies have used their bargaining
power to force them to accept slower payments.”
Growing Pressure on Smaller Businesses
This trend of delayed payments began in the wake of the recession, but has continued to worsen. It places enormous stress on smaller businesses, which often don’t have the bargaining power to address the problem. When businesses are collecting a lot more slowly than they are paying out, it stunts their growth. These companies are being forced to postpone hiring and expansion and to reduce investment in research and development, creating a potential “drag” on the economic recovery.
Getting the Working Capital Your Business Needs
Smaller businesses in this predicament actually have more financing options available to them than ever before to help them mitigate prolonged collection periods. US Capital Partners specializes in providing the right financing—either cash-flow term loans, asset-based lines of credit, or both—to provide help quickly for businesses in this situation.
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 US law firms. “We approached US Capital Partners to place a scalable line of credit to support our growing working capital needs,” said Walter Ledda, CEO at Morgan Drexen. “US Capital Partners successfully arranged a $2 million accounts receivable line of credit for us, which will support our ongoing expansion. We are very pleased with this financing.”