When most small businesses need cash to finance growth or cover existing bills and payroll, the first place they generally go is their neighborhood bank for a small business loan. This is largely because they are not aware that there are other ways to secure financing for their business. They may not be familiar with account receivables factoring or have misgivings about it such as thinking factoring receivables is only for certain industries or businesses in certain types of situations.
Low Rate Term Loans from Fast Factoring Companies
With the rise of alternative financial institutions in the past several years, small business owners now have more options available to them. They can have the best of both worlds by securing a more affordable term loan of a bank with the accessibility of invoice factoring company. Having more choices is a good thing because it increases competition, which means lower small business loan rates and financing fees all around. Today invoice factoring companies are offering an array of financial solutions including traditional short term and long term loans with flat and adjustable rates.
Expect Faster Processing Time, Competitive Rates with a Factoring Company
Expediency is a key benefit of securing a loan from a factoring company. Whereas a big corporate bank may take several weeks to even decide whether or not they will offer you the term loan, a factoring company will generally be able to let you know in a matter of days. This is because their business model is centered on speed enabling invoice factoring professionals can apply their efficiency to
Depending on your company’s credit history, financial statement, tax returns and more, an invoice factoring company with a high line of credit may be able to offer you a long term loan at a rate that compares to a national bank. It is also worth mentioning that factoring companies are used to having to be competitive in their offerings and as a result are very customer service oriented.
So if you need to finance your business with small business loan, an invoice factoring company might be a great solution offering the fast turnaround they are known for with generally lower rates of small business loans.