Business Financing for Minority-Owned Companies

Minority Small Business Factor Financing Funding Opportunities

Special Factoring Programs for Black-Owned Businesses

Cash Flow Funding for Minority Business Owners

According to the 2020 Annual Business Survey, over 18% of US-based businesses are minority-owned. Minorities have great ideas for change but usually lack the working capital support to obtain business financing. As seen by the New York Fed report in 2021: black owned businesses received 43% of the PPP Loan funding they sought. Compared to white owned companies receiving 79% of the funding they sought.

Obstacles to get traditional loans cause minority business owners away from having debt financing. However, many business owners do not understand that there is an alternative form of business funding without going through ordinary financial institutions. Even the small business administration SBA loan products have a minimum 650 credit score with limited funding options.

Bankers Factoring turns minority-owned businesses’ unpaid accounts receivables (A/R) into fast working capital. Factoring Financing injects immediate cash flow into your business by selling your outstanding invoices. We also allow minority-owned business owners to bypass the 30, 60, or 90-day wait to receive customer payments.

You can also read our article on factor financing for minority-owned companies.

Factoring financing is a proven way to finance businesses without taking on balance sheet debt and lessen your credit risk. If your Minority Business Enterprise (MBE) is struggling to fund operations, contact our MBE Factoring Financing team to develop a cash flow financing plan.

Why does my minority-owned business need factoring financing?

Many entrepreneurs invest money into their startups or seek funding from friends and families. This method can help start the business initially. Still, as your MBE grows and get commercial clients, you need to expand your financing.

Factoring financing is unlike traditional loans. There is no monthly note payment in factoring agreements. Moreover, minority business owners sell Bankers Factoring their unpaid invoices and provide two cash advances – it is that simple.

Common reasons why our minority business owners need cash flow funding:

• Bank loan denial or turned down for a small business loans.
• Read our article, “How to Obtain Financing After Bank Loan Denial.”
• Poor credit history is not a problem. Bankers is not credit score driven.
• Small business grants for minorities are just not enough.
• Need cash funding fast.
• Non-recourse factoring with Bankers is cheaper than swiping credit cards.
• Poor cash flow to pay weekly billings.
• Struggling to make payroll.
• Limited cash reserve, which limits the ability to acquire new customers.
• The monthly burn rate is higher than projected.
• Need of a letter of comfort for government agencies.

If your small minority-owned business can relate to these issues, complete our online funding application to begin the fast financing process.

What is factoring financing for MBE?

Factoring financing, also commonly called invoice factoring, is a form of business funding for the not-yet-bankable MBE. The transaction is effortless – the MBE agrees to sell their unpaid invoices to Bankers Factoring in exchange for a cash advance.

Minority-owned businesses receive funding in two payments in a factoring agreement:

1. An initial cash advance of up to 93% of the total unpaid AR value
2. A final cash disbursement of the remaining open balance, less our small factoring fee starting at .95%

Invoice factoring provides a steady source of cash flow for MBEs with slow paying customers. So if your small minority-owned business is extending credit terms without enough financing, we can help. In fact, factoring financing removes the burden of waiting months for customer payments.

Minority Business Funding Program

Invoice factoring helps overcome hurdle in getting business funding for minority business owners. Bankers Factoring and our private network provide funding to minority small businesses. If your company has received a minority designation, our MBE Factoring Financing team can help you secure business factor funding.

To be considered a minority owner, your business needs to be at least 51% owned and runned by any of the following:

Never miss out on business break. We have a special start-up minority groups business development program for:

• Woman-Owned
• Black or African American-Owned
• Hispanic Owned
• Diversity-Owned
• Native American/Pacific Islander Owned
• Disabled Owned
• Veteran Owned
• Socially and Economically Disadvantaged Owned Companies (including start-ups)

Please read our articles that help start-up companies.

How does my business use invoice factoring?

Factoring financing provides a quick form of capital boost for your MBE business. Your business is funded on the same day as your factoring agreement approval. This means we directly transfer up to 93% of your unpaid AR balance upon approval to minority small business owners, unlike the time it takes to qualify for minority business loans.

Bankers Factoring MBE business funding program offers a flexible financing facility to grow your business. Invoice factoring proceeds can be used for business costs. It is typical for factoring financing to support payroll funding. Staffing and payroll are some of the highest costs for employers, and having regular cash helps retain staff.

Please read about our programs for small business invoice factoring.

Typical uses of business funding include:

• Payroll funding
• Increase staffing
• Insurance
• Rent/Lease
• General business expenses
• Sales and Marketing
• Taxes
• Weekly payables 

Advantages of MBE Factoring Financing

Businesses lacking ample cash flow will face difficult decisions about continuing the business. Without working capital, any company will surely close its doors. Factoring financing provides minority owned jobs with a cash flow facility to fund operations.

When businesses lack enough cash flow, they cannot execute growth plans. For example, suppose a company cannot manage its cash flow to meet payroll. In that case, it will not be able to acquire new customers without other funding. Factoring financing is a business funding program that helps MBEs grow by not having weekly cash flow need.

Please read about our non-recourse factoring for start-ups.

Invoice factoring is a fast-financing solution geared for the not-yet bankable minority business owner that helps with:

• The fast approval and funding process can be completed within one to two weeks. Compared to the months it takes for bank loans.
• Eliminates the day’s sales outstanding (DSO) or the wait from sending your goods and services to getting customer payment.
• Available working capital can be used to execute business development plans such as increased staffing or marketing campaigns.
• The not-yet bankable minority-owned business qualifies for business funding.
• Turned down for SBA 7a? Poor credit business owners can qualify for invoice factoring financing.
• Microloan program, grant program, and grant funding are not enough?

Bankers Factoring Minority Business Financing

Bankers Factoring is proud to serve the under served group and minority businesses lacking business funding options. Factoring financing provides an alternative source of business funding for MBEs that does not require taking out a loan. Invoice factoring for minority businesses turns unpaid AR invoices into same day working capital. Small business development centers even refer us business with our low eligibility requirements.

We help minority business owners remove cash flow gaps in the operating cycles. By adding working capital into your business, it can take on new customers and achieve new levels of growth. Bankers Factoring is honored to help small minority businesses secure fast working capital while we take on the credit risk. Let Bankers be your cash capital partners and your go-to funding source when minority grants just aren’t enough.

The added value of Bankers Factoring minority business financing is our AR protection. We offer non-recourse minority factoring, which protects business owners from customer bankruptcy, insolvency, or slow pay. With Bankers Factoring, we provide cash flow funding and take on the credit risk for our MBE clients with our small business financing.

The federal government and large companies want to buy from you, and we can help with our smooth application process and quick first funding.

Ready for the owner-employees of Bankers Factoring to fund your minority-owned business? Use our fast online factoring application or call the toll-free number 866-598-4295

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