Harper is a California factoring company partnered with many in-state businesses.
California companies deserve a financial partner that understands the unique business models and new technologies that make our state a haven for innovation.
Startups and small businesses in California seeking funding are often turned down by banks and other large financial institutions.
Factoring companies can provide a great alternative financing source – improving cash flow, funding operations and fueling growth. However, finding the right match is essential. Your factoring company partner should completely understand your business. The relationship should be more than just that of an arms-length capital provider – rather a trusted partner that can scale with your business. Working with a California factoring company, like Harper Partners, offers immediate funding, excellent service and the expertise that your business deserves.
Invoice factoring, or accounts receivable financing, is a solution that many businesses turn to in order to cover their expenses and invest in growth.
Factoring companies help small businesses grow by advancing them up to 90% of their accounts receivable balance upfront. Once your customer pays, the factoring company rebates the remaining balance to you, minus a small monthly fee ranging from 1% – 3%.
Factoring companies can also handle collections if requested, so you don’t have to worry about collecting payments or checking the credit of new customers. Business overhead is reduced by outsourcing accounting and admin functions to your factoring company partner.
Invoice factoring is a great financial tool for companies in industries common to California. Don’t see your industry listed below? If you sell to other businesses or the government, we can work with you!
Companies qualify for factoring if they sell to another business or the government. Industries, such as retail wholesalers and advertising, frequently take 60+ days to pay their vendors. This is a reason why many small businesses struggle to generate steady cash flow and can’t self-fund growth. Factoring helps businesses facing long payment terms or that are growing so quickly they need to reinvest cash locked in AR immediately.
Check out the case study below of one of our advertising clients after working with us for 20 weeks. They faced payment terms from clients as long as 120 days. We’ve seen this scenario play out with clients time and time again. The business is able to receive the cash it needs, when it needs it, and management is able to refocus on growth.
CASH BALANCE OF ACTUAL HARPER CLIENT
Cash balance of Los Angeles advertising agency with 75 day average payment terms (up to 120 days for certain buyers). Agency partnered with Harper to use invoice factoring to fund operations while experiencing 3x revenue growth. They maintained the cash flow needed to pay employees and vendors on time without raising additional equity. Founders today still retain vast majority of equity.
Businesses who utilize factoring include startups seeking to finance growth, established companies bridging temporary cash flow shortfalls and the many businesses frustrated by banks.
Clients choose a factoring company for several reasons including ease of working with them, capability to grow alongside them and ancillary partnership benefits. Harper’s online invoice management system makes it easy for you to request funding and monitor your outstanding advances from your laptop or phone.
Compared to a bank loan, Harper’s application process is much simpler and faster. After the application is approved, funding is processed within 24 hours (Harper provides same day wires as requested). Factoring, in general, is a quicker, less complicated financial solution than bank funding. It is also much, much less expensive than merchant cash advances. In addition to the benefits described above, factoring is NOT debt, it is a sale of receivables. Thus there’s no restrictions on use of funds like there would be with a loan!
Harper has worked with companies in San Francisco, the greater Bay Area, San Diego, Sacramento, Central California, Orange County, Inland Empire, Santa Barbara, and many other parts of the state.
We are a Los Angeles factoring company that works with clients all over the U.S., but we’re particularly adept at partnering with California-based businesses. Our deal sizes range from $50k to $5mm with factoring rates from 1% – 3% per month. We’ve worked with tech startups (both VC funded and bootstrapped), online publishers, advertising agencies, transportation companies, entertainment studios and IT businesses to name just some of our California clients. Along with funding, Harper provides financial consulting, fundraising resources and other partnership benefits.