Invoice Factoring Rescues Struggling Businesses

 The Challenges of Cash Flow Bottlenecks for Struggling Businesses

Growth can halt when cash flow falters, especially during crises like COVID. Here’s why Group X struggled:

•  : Lengthy invoice payment terms and supply chain shifts stalled operations for their goods or services.
• Capital Shortages: Without working capital, scaling HVAC production or construction projects was impossible.
• Financial Risks: Two Group X companies reported losses, risking failure without business financing.
• Lost Opportunities: Slow funding delayed new projects, threatening competitiveness in manufacturing and construction.
• Alternative financing like invoice factoring offers cash flow solutions to improve your cash flow for struggling businesses.

How Invoice Factoring Helps Struggling Businesses

Invoice factoring turns unpaid invoices into immediate cash advance, a key factoring service from EBF:

• Invoice factoring turns unpaid invoices into an immediate cash advance, a key factoring service from EBF, driving business recovery through factoring:
• Fast Access: Sell invoices for funds in days—perfect for fast funding for struggling businesses and fast working capital for Canadian manufacturing businesses.
• No Debt Burden: It’s not a loan, enhancing financial stability without impacting credit history, simplifying the application process.
• Scalable Support: Funding scales with invoices, a top cash flow solution for small businesses.
• Efficiency: Avoid bank delays and lengthy approval processes with quick funding for HVAC business growth.

Benefits of Alternative Financing for Business Recovery

Alternative financing outpaces traditional methods for struggling businesses:

• Alternative financing outpaces traditional methods for struggling businesses, enabling business recovery through factoring:
• Speed: Cash in days, not weeks, unlike conventional type of financing, supporting positive cash flow.
• Flexibility: Tailored factoring services—with a modest factoring fee—ensure sustainable cash flow for recovery, covering operating expenses.
• Low Barriers: Use invoices for accounts receivable finance, not assets, for SMB funding.
• Recovery Boost: Reinvest quickly, boosting profit margins and growing your business. Explore our solutions

Case Study: Group X’s Turnaround Through COVID

The Challenge

Group X, a Canadian conglomerate of four HVAC companies (design, manufacture, installation, maintenance), hit a wall during COVID, struggling with cash flow issues in day-to-day operations.

Over two years, two businesses reported losses while lengthy collecting payments and supply chain shifts raised operating expenses and unexpected expenses. Traditional loans moved underperforming units to special facilities, but no financing solution met their needs for fast funding for struggling businesses.

EBF’s Solution

• EBF provided invoice factoring for the manufacturing business, assessing Group X’s needs and refining internal processes to drive business recovery through factoring.
• A $5.6M invoice factoring facility delivered fast funding for struggling businesses, addressing immediate needs like production increases and new projects, covering operating expenses.
• Guidance improved cash flow, maintaining customer service while settling supplier debts for smoother logistics via early payments.

‘EBF used their experience to craft the right financing solution for us.’ Director Richard Green”

The Result

With quick funding for struggling businesses, Group X:

• Scaled manufacturing and construction, hitting milestones during 2020’s disruptions.
• Reported their best financial year in 2021, creating jobs and achieving financial stability after COVID.
• Gained autonomy over finances, returning to banking after 24 months, per Green: “EBF’s cash flow solutions let us fly post-COVID.”

“If your business is at a point where it needs cash flow, EBF’s solutions will allow you to move forward. They allow you to retain complete control over the processes you can manage, and step in with experience and knowledge on the processes which you need help with. They allowed us the time to get our businesses going again and returned control of our internal workings back to us. I have nothing but good things to say,” concludes Green.

How to Achieve Financial Stability After COVID

Recover and grow with these strategies:

• Leverage Factoring: Invoice factoring to improve cash flow in construction speeds up invoice payment—see Benefits of Factoring for Business Recovery.
• Secure Funding Early: Use SMB funding to avoid bottlenecks post-crisis.
• Choose Flexibility: Opt for fast working capital over rigid type of financing with EBF.
• Weigh Options: Consider the pros and cons of factoring, like higher factoring fees but faster cash advance.

From failure to flight, Group X’s story shows how alternative financing like invoice factoring drives business recovery through factoring, rescuing small businesses from cash flow issues. EBF’s factoring services deliver cash flow solutions for manufacturing and construction firms, ensuring financial stability after COVID and positive cash flow.

For Canadian SMBs seeking a financing solution, we offer speed and guidance to grow your business confidently—turning setbacks into business growth.

Boost Cash Flow with Factoring – Learn How!

Discover how invoice factoring helps struggling businesses recover. Contact EBF for a free consultation and unlock fast working capital for Canadian manufacturing businesses today. Chat with Us or visit Our Services.