Hey DF,

As many of you know.... We are Seacoast Business Funding, a division of Seacoast Bank. We offer flexible working capital solutions in the forms of factoring and asset based lines of credit. We are unique in the market as we are owned by a bank, but can still working with challenged companies, work with companies where there bank lines are not providing enough liquidity due to dynamics of the business, and can sometimes provide more flexibility as we do not have a senior lender to answer to. We partner with companies nationally and are very active in several industries.

One industry that can be difficult to finance is software or companies providing SAAS. Typically these companies are selling licenses to their customers on a monthly bases or annual basis and the invoices are pre-billed. The services has not been delivered, used, or accepted for the entire time period before the invoice is delivered. The trouble with financing these invoices is cancellations by the customers. The same holds true for alarm companies and personal emergency device companies. They all pre-bill invoices. There are some finance companies out there that will provide working capital facilities for these companies. SVB and Lighter Capital come to mind.

A part of this industry we absolutely love is the companies that are providing coding services for the software companies or large customers. This is really a staffing play. Coding companies are hired under contract to provide services to the customer and typically bill for time and materials monthly under the contract. There can be some working capital issues for the coding companies as payroll for the coders can be weekly or bi-weekly and for most they can only invoice monthly on terms that can be N30-N90. The coding company has to float a pretty hefty payroll for an extended period while waiting for the customer to pay the invoice. As you can imaging this can be a huge strain on working capital.

I spoke with an investment banker at an event last evening that is working with a client with this exact issue and can't wait to meet the client.

Below is a link to a recent success story.

https://seacoastbusinessfunding.com/...ring-facility/

Best,

Kevin