Turned Down for a Traditional Loan? Invoice Factoring May Be for You!

If you have been turned down for working capital loans by traditional sources such as banks, the SBA, or small business lenders because you are a startup, are a poor credit risk or don’t meet certain bank loan guidelines, invoice factoring may be for you. But what is invoice factoring and how does invoice factoring work?

Invoice factoring, doesn’t focus on your financial history, but on the credit history of your buyers. An invoice factoring company evaluates the credit history of your buyers asking “Will this buyer of your goods have the financial ability to pay in a timely manner?”

An invoice factoring company will advance you funds against your receivables, provide credit protection and collection services. You can now make payroll, pay your suppliers quicker to get those discounts and have funds available to start those company projects.

Invoice factoring is ultimately an inexpensive form of equity financing. Consider the alternative. What would it cost you to bring on a partner to give you a cash infusion to grow your business: Salary, benefits, car, health care and ultimately company stock and the future profits of you firm? An invoice factoring company wants none of these but only a fee to process, advance funds and collect on your invoices.

As your sales increase an invoice factoring company can grow with you. You won’t be limited to a credit line limit as you would with a traditional lender; you won’t have loan covenants, periodic loan reviews or monthly payments to make. As you grow your sales your invoice factoring company grows with you.

Our firm has done invoice factoring for over 30 years with thousands of companies like yours. Fill out our quick application or call us immediately for a free no obligation quote for our services.