Cash flow issues dominate startup and industry challenges

HOUSTON, Dec. 15, 2021 (GLOBE NEWSWIRE) – Leading bill finance company Charter Capital says cash flow challenges continue to dominate the list of reasons small businesses fail. The company’s recent publication, “6 Common Challenges Facing Start-ups,” explores this and other root causes of business closures as well as concrete solutions in each area. The full exhibit is online at now.

Gregory Brown, co-founder and executive director of Charter Capital, says small business owners often focus on profitability, but that’s just one indicator of a company’s financial health. Effective cash flow management is vital, especially for rapidly growing businesses.

“Growth and profit are a double-edged sword that can lull business owners into a false sense of security,” says Brown. “A business can be busier than ever, but founders almost always fail when their operational expenses increase before inbound payments. “

Brown argues that this is why growth, not necessarily lack of profit, is the cause of dwindling working capital reserves and is what makes many startups falter.

“It’s normal to see this kind of cash flow gap in high performing startups,” Brown continues. “But, when founders are unprepared for the pressure of growth and cannot obtain financing through traditional sources, they begin to accumulate late fees and are tied to expensive long-term contracts with lenders, which is detrimental to their long-term growth. Course.”

According to Brown, entrepreneurs can scale up without being tied to expensive financing solutions by taking advantage of invoice factoring. With factoring, the business receives a cash advance on its unpaid B2B invoices, so payments are accelerated and there is no debt to repay. This solves current cash flow issues without compromising the long-term viability of the business, thus fortifying businesses against the leading cause of startup failure on multiple fronts.

Additional tips outlined in the Charter Capital press release include hiring a co-founder to improve performance and reviews, as well as designing creative benefit packages to attract top talent.

Those interested in learning more about invoice factoring are encouraged to request a free quote by calling 1-877-960-1818 or visiting

About Charter Capital

Based in Houston, Texas, Charter Capital has been a leading provider of flexible financing solutions to the B2B industry for over 20 years. Competitive pricing, a fast approval process, and same-day financing help businesses across a variety of industries secure the working capital needed to manage day-to-day needs and grow. To learn more, visit or call 1-877-960-1818.

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Image 1: Common challenges faced by start-ups

Your startup may find itself short of working capital due to increased sales, at certain times of the month, or during slack periods.

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