Stuck in a Cash Crunch? altLINE Invoice Factoring Can Help You Grow

Stuck Waiting on Unpaid Invoices?

Birmingham business owners: If your business is consistently waiting on invoices to be paid, stuck in a cash crunch you can’t seem to get out of, you’re not alone.

Most small businesses reach a critical juncture where they need immediate cash to reach the next level. However, if customers consistently pay on Net 30-90 terms, it’s easy to come up short on cash flow while waiting on receivables. That can quickly stifle the growth of a quality business.

Invoice factoring often comes with a stigma, but when done right, it’s a legitimate funding solution for businesses that can’t acquire traditional forms of lending or lines of credit. Why the stigma? Because many factoring providers employ shady tactics and hidden fees that make factoring an unpredictable or unsustainable expense. Choosing the right factoring company is critical. That’s why businesses in Birmingham are turning to altLINE.

What is altLINE?

Founded in 1936 in Gadsden, The Southern Bank has established a reputation of trust and community partnership in the state of Alabama for over 80 years. Working closely with growing, the bank identified the consistent need for non-traditional commercial lines of credit. In response, they developed altLINE, a Birmingham-based division of The Southern Bank, specializing in invoice factoring and accounts receivable financing.

But altLINE isn’t just another factoring company – because it’s a division of an FDIC Insured bank, it provides customers the flexibility of an independent financing company with the cost advantages and trustworthy services that you’d expect from a community bank.

A Direct Source of Funds

Most factoring companies must borrow funds from other banks prior to extending factoring to a customer. altLINE is different – As a direct source of funds, they’re able to keep factoring rates low while greatly reducing the risk a funding shutdown. See the chart below for an illustration of the difference:


Partnering with Bankers and Brokers

altLINE doesn’t just partner directly with business in need of cash. They work with commercial bankers, accountants, business advisors, and other intermediaries across the country to deploy specialty lending wherever it may be needed. Difficult credit profiles? Limited operating history? They help find an alternative lending solution for the customers others are unable to service, while offering competitive compensation for referrals and partnerships.

How Does Factoring Work?

An invoice factoring agreement involves three parties: The Business (the seller of invoices), The Business’s Customer (the debtor) and the Factor (the factoring company – in this case, altLINE).

Let’s say you, the business, have outstanding invoices to your customer. You would sell those invoices to a third-party financing partner (altLINE). Rather than waiting 30, 60 or 90 days for you customer to pay, altLINE funds up to 90% of those invoices within 24 hours, giving you the cash flow you need to grow today. When your customer pays their bills, altLINE keeps between 1-5% of the face value of the invoice, then transfers the remainder to you. That’s it!

The Benefit for You?

altLINE offers businesses quick and consistent access to cash when they need it most. That cash can be used to pay your vendors or employees, invest in capital or simply keep the lights on, all of which are critical to maintaining and growing a profitable business. Contact altLINE’s Birmingham office today and receive a free, no-hassle quote to find out more about how they can help. Click the link below for more information.

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