Come to Access to Capital in Atlanta and learn how spot factoring can grow your business
Access to Capital: Money to Mainstreet – Atlanta is right around the corner, and we are excited to have more and more lenders signing up to participate in the Financial District. Each lender takes a different approach to business financing from crowdfunding to merchant cash capital to factoring, giving attendees the opportunity to find the source of capital that will best suit their needs.
The new $1 billion downtown stadium project for the Atlanta Falcons is just one of many upcoming commercial construction projects in the metro-Atlanta area, promising opportunities for contractors to bid on new jobs and creating a need for construction financing.
Subcontractors in need of quick cash to temporarily fund their operational costs might consider the Interface Financial Group. They use a specific type of factoring called spot factoring to successfully fund businesses—a third of which are construction companies.
Spot factoring is a variation of regular invoice factoring that allows the business owner to choose which invoices to sell on a transaction-by-transaction basis. This works for businesses trying to gain enough steam to qualify for a traditional loan without having to turn over their entire accounts receivable to a factor.
Here’s some at-a-glance information about IFG:
- The Interface Financial Group typically works with subcontractors who already have revenue and a contract and are in need of funds to buy supplies and pay salaries necessary to get a job done.
- This is a short-term lending model. Businesses typically work with IFG for 6 to 8 months, according to Garr.
- Beyond construction, The Interface Financial Group works with the following industries: manufacturing, information technology, consumer projects and staffing.
So how exactly does spot factoring work?
After passing a preliminary screening process, your business is free to exchange any one or more invoices for purchase. IFG will check the client’s credit and inform them of the purchase of the invoice. Once these steps are complete, you will receive cash for the invoice. When the project is done, the client will pay IFG directly, completing the transaction.
Representatives from the Interface Financial Group, including Tom Garr, will be at Access to Capital, as well a number of other lenders. See a complete list of participating lenders. Register for Access to Capital here.