An outgrowth of the No Child Left Behind Act of 2001 was supplemental educational service providers. Educational providers offer tutoring and remedial help to public school students outside of regular school hours.
Educational providers bill school districts for the services they provide and must wait 60 days or more for payment. Like companies in other industries that depend on accounts receivable to fulfill their cash flow needs, educational providers can find themselves without working capital for expenses such as:
- Payroll expenses for office staff and teachers
- Day-to-day operating expenses
- Advertising and marketing their services for short and long-term growth
Factor Funding Company offers factoring solutions nationwide to businesses in all industries. It has developed educational provider factoring solutions to meet the cash flow challenges unique to the education industry.
Educational providers depend on payments from school districts to provide working capital. School districts that are slow to pay outstanding invoices can cripple a company. Factor Funding Company evaluates an educational provider’s invoices and immediately advances a percentage of the outstanding balance. The educational provider can use the cash to run their business, pay teachers or invest in marketing to help the business grow.
Resorting to bank financing, credit cards, family or investors to satisfy the cash flow needs of an education provider can be time consuming and expensive. These other options might not be feasible or desirable for many reasons, including:
- Owners have poor past credit histories
- Business is new with little or no credit and income history
- The education provider lacks documentation to satisfy bank requirements
- Investors want control over the business in exchange for the investment
Educational provider factoring is quick and simple. It offers the educational provider the cash flow needed to operate and grow but without giving up control of the company. Because factoring is not a loan, there is no monthly payment to burden an educational provider’s resources.
Educational Provider Solutions
Factor Funding Company used its knowledge and experience to develop factoring solutions to solve the cash flow challenges of educational providers. Contact us to learn more about our educational provider factoring solution. Find out how quickly and easily your company can get the cash it needs to operate and grow.
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