Factoring Businesses With Tax Problems

factoring businesses with tax problems

Towering Problem...

When David Kelly started Kelly Services, he never imagined how high is company would go. "When we started, we were specialists in tower engineering but over the years our clients asked us to diversify our services. Now, we're providing site location services to tower beacons...and absolutely everything in between!" . King Services went from 3 employees to more than 90 in less than 8 years and felt all of the challenges of a rapidly growing business. "Our growth was extraordinary and we were on top of the world until we found out our bookkeeper was not paying payroll taxes properly. We were shocked at the enormous liability and the penalties that were associated with it.

"We did not have that type of money sitting around.Our bank was less than excited to help us out of a difficult spot and recommended Gateway."

We were able to work with Kelly's accountant and the IRS to develop a reasonable installment plan that would quickly retire the liability while allowing the company to have adequate cash flow to support operations. "We were thankful to find a funding partner that understood our situation and cared about our business." We're here to help.

...Sensible and stable solutions!

Factoring Finance Can Get your Business Out of Tax Troubles

Sometimes it takes a crisis before a company finds a cash flow financing partner that it simply could not live without. A growing business often assumes that all of the details are being taken care of and can let a lot of things slide that can come back and haunt it later on. When the hammer falls, it can make a lot of noise and cause a lot of problems.

Companies that initially focus on one type of product or service sometimes find that they can actually diversify and make a lot more money. While the idea sounds great, it can be dangerous if it is not planned properly. An invoice factoring company should always be part of your business growth planning because of the resiliency of factoring and the positive effect it can have on a business. Without that kind of resiliency, a company can be caught off guard and it could be a complete disaster.

When you are investigating potential cash flow financing partners, it is important to understand exactly what those partners can do for you. For example, would a bank be willing to provide cash flow financing in a situation that involved tax liens and possibly even bankruptcy? In reality, even the closest banking partners you have may be unable to lend you the funds you need to get through tough times. The frustrating part is that you are still generating invoices and your company is still growing despite the logistical challenges. But it is that growth that a factoring company can use to get you out of trouble and back on the path to being profitable.

An invoice factoring company can be your most versatile and resilient cash flow financing partner, especially in a time of crisis. Even if your company has just come out of bankruptcy or is facing tax problems, a receivables factoring company can help keep your company going, as long as you have a steady stream of qualified invoices going out.

The key to your company's success has always been the ability to increase the amount of invoiced sales you have. When you measure growth, you measure it by checking the aging report to see how much more you have in outstanding invoices this month compared to last month. If your invoices can help you plot your success, then they should also be the foundation of your financial stability as well.

When times are tough and your company is facing tax problems and potential liens, then there is a very good chance that your bank will not be a cash flow financing option. The good news is that a receivables factoring company can turn your qualified flow of invoices into the cash you need to stave off financial collapse. The really good news is that by sustaining an ongoing relationship with a factoring company, you will always have the cash flow financing you need to meet all of your financial challenges and you will never be left in a position where a surprise could suddenly put you out of business.

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