How to start new business when own financing is limited

I founded a new company last year – wholesale of steel profiles. I have many years of experience in this field of business and many contacts on interesting customers; this year I have managed to sign frame contracts on very good volumes with them.

I had to offer payment terms of 60 – 90 days to my customers, but have to pay my main supplier in 30 days since an invoice issue. When I needed more money and asked my bank for a loan, I was not considered a suitable applicant since my company has a very short history. I was not successful to convince the bank that I am able to reach high growth of turnover in a relatively short period.

Therefore I tried CSOB Factoring. I handed in the same documents I already prepared for the bank and within one week a drawing limit was approved. The cooperation still runs in accordance with the plan - each issued invoice is assigned to CSOB Factoring and I can immediately have an advance up to 85 % of its nominal value. Thanks to this service I can pay my payables on time and carry out planned turnover as well as revenues.