Factoring and the "Cash Gap"
Cash flow makes or breaks a company, regardless of how successful that company may appear to be. Understanding the "cash gap" is key to understanding cash flow issues. The cash gap is the number of days between a company's payment for materials or services and its receipts from sales.
If a company is to grow, it must bridge the cash gap. If not, a company experiencing rapid growth could find itself on the verge of bankruptcy, simply because cash flow exceeds inflow. Profitable companies can and do go out of business because they didn't close the cash gap.
“Entrepreneurship comes to people in many ways for many reasons. Carefully planning and understanding the risks associated with it is an important start towards success."
- Dylan Morgan, Executive Vice President, Prairie Business Credit
What Others Are Saying About Us
"Our company had expenses to pay before our customer would pay us. We were looking for alternative financing. Prairie Business Credit was highly recommended from our bankers. Prairie Business Credit completed what they promised and helped us grow. They are very supportive partners."
- President of Disaster Recovery Company