Many small- to medium-sized businesses are not familiar with all the different options that are out there when it comes to getting financing for their company. Because of this, many businesses continue to apply for business loans at traditional corporate banks despite the fact that these banks are no longer lending like they did eight or ten years ago. Yet businesses of course are still needing cash injections for any number of reasons including:
- Expanding into new office or facility space
- Moving into new markets
- Hiring and covering payroll for new staff
- Boosting marketing and advertising efforts
- Maintaining and upgrading computer and IT systems
- Improving financial management / cash flow
- Paying an unforeseen bill or expense on time
Factoring Financial Services Are Accessible to the Small Business Owner
While banks are saying no, more and more small businesses are turning to other reliable options such as factoring services. Accounts receivable factoring, also known as invoice factoring services, is a way you can get cash within 24 hours by selling your existing receivables or invoices. It is not a business loan, so there are no monthly repayments, no need to put down collateral, and no need to spend hours and hours filling out complicated forms and business plans. Financial services factoring relies on the strength of your clients and their credit score rather than your own business’s credit history so you don’t even need to run a credit check. Small businesses with reliable clients and high dollar-worth invoices are good candidates for fair-priced and fast account receivable factoring.
Business Factoring Services Lend a Hand in Administration Duties
Unlike banks that want to review your business plan and assess the reasons you want the term loan for your business, invoice factoring services does not concern itself with this. Business factoring services rely on you the business owner to run and manage your business as you see fit. After all, that is what you do, right? A perhaps secondary but notable aspect of factoring financial services is that it helps to take over your less pleasant business functions – collections and account receivables management – enabling you the business owner to have more time and energy focusing on the crux of running your business, whatever that may be.