Management consulting firm reduces financing costs with a $1M factoring line

AR Funding is proud to welcome this consulting firm as one of its newest clients.

AT A GLANCE

Industry: Business services
Location: MD
Company size: ~$1.2M annual revenue
Reason for applying: Access capital without high fees
Cash available through factoring: $1M

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PROBLEM: High financing costs hold back growth

Founded in 2016, this women-owned management consulting firm helps small, mid-tier and large clients find and win federal contracts. 

Due to factors beyond their control, the firm had recently lost their bank line of credit and had turned to a merchant cash advance (MCA) for the capital they needed to continue to grow the business. Unfortunately, the MCA charged very high interest rates that jeopardized the company’s margins. The company also had a factoring line, but the factoring company charged high fees for their service. 

SOLUTION: $1M factoring credit line

The firm began looking for more affordable financing options, and a business colleague of the owner’s recommended AR Funding. We met with members of the firm and were able to offer them a $1M factoring line that allowed them to pay off the MCA entirely and replace their existing, high-cost factoring arrangement. Now the firm has access to the affordable capital they need to grow sustainably.

This happy client received financing with help from Mike Clark, Regional VP, Northeast Region. Find out how much cash your company can access through invoice factoring. Talk to us.