HOUSTON – August 9, 2022 – ( Newswire.com )
First bill finance company Charter Capital says small businesses are exploring new ways to finance their inventory purchases as record inflation rates and supply chain issues continue to drive up costs. The company examines the extent of the problem and potential solutions in “The 4 Main Types of Inventory Financing for Small Businesses,” which is now online at charcap.com.
With trade logistics costs up 22% in 2021 according to the Wall Street Journal and continued tensions in the first half of 2022, small businesses have been particularly hard hit. Requests for financing to help cover operating expenses, a slice that includes inventory and payroll, dominated in the last reporting period according to the Small Business Credit Survey. The report further notes that half of all companies with a funding gap do not apply. Weak company finances and overly strict lender requirements are the most cited reasons for not applying despite the need.
“It’s a tough situation,” says Joel Rosenthal, co-founder and chief executive of Charter Capital. “Small businesses, which are typically the most vulnerable to inflation and supply chain disruptions, have been weathering the storm for so long they’re at breaking point.”
Rosenthal says many tried to absorb rising costs to maintain customer relationships in hopes the economy and supply chain issues would calm down. Today, they are struggling to cover their basic expenses and traditional sources of inventory financing, such as short-term loans and trade lines of credit, are drying up as banks try to limit their risks.
“We are doing what we can to help,” continues Rosenthal. “Many small business owners have never heard of invoice factoring, let alone how it can help them finance inventory. When they realize how easy it is to qualify and that they can get cash for stocks right away is a huge weight on their shoulders.”
Unlike other financing sources that create debt, invoice factoring is like a cash advance on unpaid invoices. The business is free to purchase inventory, cover payroll, and meet other expenses. The advance is repaid when the business owner‘s customer pays their bill, according to Rosenthal. He notes that Charter Capital has seen an increase in applicants from transportation, personnel, manufacturing and other industries as a result.
Those interested in learning more about factoring can request a free quote by calling 1-877-960-1818 or visiting charcap.com.
About Charter Capital
Based in Houston, Texas, Charter Capital has been a leading provider of flexible financing solutions for the B2B industry for over 20 years. Competitive pricing, a fast approval process, and same-day financing help businesses in a variety of industries secure the working capital needed to handle day-to-day needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.
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Primary source: Small business owners seek relief from rising inventory costs