Porter Capital Offers New Funding Tools To PPP Recipients

Porter Capital, which works with accounts receivable (AR) financing and asset-based lending solutions, will provide more funding for businesses in need of extra money from their current Paycheck Protection Program (PPP) funds, according to a press release.

“With the new COVID-19 stimulus package signing, many small business owners can apply for another round of Paycheck Protection Program loans,” said Senior Vice President National Sales Manager John Cox Miller in the release. “In some cases, businesses will find the PPP loan amount isn’t enough, or they no longer qualify. Obtaining additional loans through traditional banks can lead to a lengthy approval process and may not get approved at the end of the process.”

Porter Capital can use AR financing and asset-based lending to give more funding for the aforementioned services, with AR financing turning unpaid invoices into “immediate cash” helpful for those working in B2B operations with clear repayment terms, the release stated.

This process won’t lead to more debt, and Porter Capital said in the release that its own services can help customers apply for and receive funds within 24 hours.

The asset-based lending product from Porter helps customers secure lines of credit using the assets as collateral. Porter Capital considers a wide range of things to be collateral, including inventory, accounts receivables, equipment, or other property owned by the business, the release stated.

With the credit lines, companies will be able to cover extra expenses not covered by the PPP, although to be approved, businesses have to show enough cash flow or assets to cover the loan, the release stated.

The next round of PPP funds was approved alongside other items in a $900 billion relief package passed by Congress last month. This round, according to the Small Business Administration (SBA), will attempt to focus more on underserved groups, such as minority-owned businesses. It will reportedly only accept applications from community financial institutions for the first two days.