Many experts from politicians to business leaders have considered entrepreneurs to be the backbone of economic growth. As commodity markets stagnate into cash cows, niche market businesses open new avenues for growth and revenue. However, financing can be challenging for companies in markets that no one has ever heard of before. In a risk-averse environment, financiers look for companies with a proven track record, or companies in a proven successful market. For this reason, many innovative companies manage the challenge by finding a willing factoring receivables company to fund their efforts. Here is more information on this financing solution.
“Standard” Targets for Factoring Receivable Financing
Although some entrepreneurs make a point of identifying new market territories, others are not so concerned with blazing new business paths, but still wonder if they are part of the “mainstream” targets for this type of financing. Some standard factoring clients include:
- Manufacturing and fabrication operations
- Commercial printing and publishers
- Staffing firms and temporary personnel providers
- Business service providers
- Companies in the oil, gas, energy, or mining industries
- Transportation and trucking firms
- Wholesale and distribution houses
These are some of the industries which make up the mainstream clients for many factoring companies. However, the best way to make sure of a company’s standing in the funding market is for the business owner to contact a reputable, well-established factoring company and begin researching the processes behind receivable financing.
How Can a Niche Market Company Qualify for Factoring Receivables?
After doing their research, company owners may find that they are truly considered a niche market by the lending industry. However, this does not necessarily limit their chances of funding approval. One of the best ways for a company to qualify for a lending program is to operate in a B2B (business to business) environment. If this is the case, they are likely to be able to find the factoring receivables program to meet their needs. Universal Funding provides a quick phone consultation where we asses if we’ll be a good fit for your needs. If your financing needs fit outside of our parameters, we’ll find you a better suited funding source from our trusted network.
At Universal Funding Corporation, we love to talk to innovative business leaders. Be sure to fill out our rate form and let us see what we can do for you and your company.