I realize this is not the optimum place to bring this situation but it being a financing forum maybe you guys can help.
We are a small contracting business that does about 30/70% residential/commercial work. Most of the commercial work of course has a 30-60 day pay cycle which is tough on payroll.
We’ve been using two local individuals to factor when they can but they are not banks, and everything is going well with them. Our problem is what seems to be a $5,000 monthly minimum in the industry that we can’t regularly meet. It’s a catch 22. The works out there in a major way to go get, and we have tons of good customer references, along with the two individuals mentioned, but can’t find a company that will factor invoices between $200 and $1,000 when needed. The industry standard seems to be 1-2% but much of this work is so profitable that we could easily give up 5-7% for 30-60 day periods.
Does anyone have any direction? It is much appreciated.