Small business is the driving force of our economy – as we’ve heard in recent political campaigns, growing businesses hire more staff and sell more goods and services to their customers.
Statistics show that businesses struggle most in their earliest years and that cash flow can become a critical issue. Traditional lenders will not often extend financing to small businesses due to their lack of experience or credit history. Depending on the nature of the business, using alternative financing methods, such as purchase order funding, Midland American Capital can help these cash strapped businesses thrive and grow, taking on more business than ever before.
Let’s say that you have purchase orders to manufacture machinery for your customers using parts sourced from a supplier in another country, Midland American Capital can finance your purchase of the parts and materials needed to fulfill those purchase orders. Once the order is complete and ships to the customer, Midland converts its collateral from the parts and materials to the accounts receivable due from your customer by factoring your invoice.
When your customer pays the invoice, Midland American Capital seamlessly recoups its amounts advanced, while you receive the balance of the proceeds paid by your customer. It’s a win-win situation.
Although we have clients from all industries, our program is used by many types of manufacturers and importers. We commonly serve companies that design or manufacturer electronics, apparel, household goods, and industrial machines and equipment.
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