Quicker Way to Get Funding
Factoring Funds and Lending
Are you a business owner looking for a quicker way to get funding?
Are bank loans just not enough at this point? If so, it’s time to check out the alternatives. Luckily, finance factoring (or factoring, for short) offers you a quick and easy way to gain funding against your company invoices.
How does it work? Simply put, you’ll find and work with a factoring partner who will take over your invoice accounts for a fee and in turn provide you with the funding you need. This funding solution is truly as simple as it sounds!
Let’s take a look at ten of the most common factoring benefits for you and your company!
1. Quick and Easy Funding
Unlike with traditional bank loans, factoring allows you to get your money within twenty four hours! This means that you don’t have to wait to make your necessary payments. Instead, turn your accounts over to your factoring partner and get paid immediately! As you might expect, this has a wide array of benefits for you and your business.
The best part? You don’t need to submit any of your tax returns or financial statements to get funding through factoring. This frees up massive amounts of time and lets you make crux payments in the nick of time.
2. More Funds than Banks
Your factoring partner won’t look at your business credit strength when deciding how much to fund. Instead, he will look at the strength of your customer accounts and the amount of money in your invoices. This means that you can get substantially larger amounts of money from your factoring partner than you can from banks.
It also means that the amount you can receive in funding will grow as your business grows, which is something to think about moving into the future.
3. No Personal Collateral
Factoring funding isn’t like a personal loan that requires you to put up your own assets to receive funding. You simply need your customer accounts. This means that, unlike banks, your partner won’t require that you put your home or real estate up as collateral.
This lets you breathe easy as you fund your business and attempt to grow in the right direction. With funding that’s completely free of personal loss, you can move your business forward on the strength of your customer accounts.
4. Time to Focus on Important Tasks
Think about this: how much time would you free up if you didn’t have to worry about those pesky invoices all the time? Chances are, quite a lot. That’s why many business owners love having factoring partners who can do busy work for them.
This frees you up to focus on the important tasks. No matter what you have going on at your business, not having to worry about your customer invoices gives you the time necessary to tackle every issue in detail and make sure that every plan moves your business in the right direction. This is crucial for young businesses or companies that are at a crossroads in their development.
5. Reduced Cash Cycle
We all know how it is. Customers don’t like to pay on time. With your traditional invoice system, you may find it hard to get the funds you need with slow customers. These customers can wait months to get the payment to you on time, seriously slowing down the rate at which you do business.
Without the funding from your invoices, you can find it difficult to grow your business or even meet payroll. That’s why it’s crucial that you have a plan in place that gets you funding when you need it.
With factoring, you can borrow money in as little as one day so that you never have to worry about running out of funding. Factoring gives you the resources necessary to make sure that your business never runs dry. If your customers are unreliable in meeting their invoices, finance factoring may be the way to go for you and your business.
6. Convenient Borrowing
Unlike bank loans, which can be a hassle to get and take forever to finally deposit, finance factoring allows you to get the funds you need when you need them. This means that you never have to worry about missing a payment or having a financial crisis.
And let’s be real: no matter what business you are running, there will be times that you are strapped for cash. In those situations, it’s crucial that you have someone around you who can give you the funds you need. This type of convenience isn’t just optional for a business—it’s completely necessary.
That’s why factoring is recommended for those businesses who are in need of frequent funding. If you can’t wait on the banks, avoid the hassle with factoring and watch your business begin to grow.
7. Improves Customer Account Quality
Your factoring partner won’t simply be in charge of providing funding and doing your invoices. He will also be in charge of credit-checking your customers. This means that your business will be able to weed out the bad and keep the good when it comes to your clients.
Obviously, this helps your business in a variety of ways. First, it allows you to get customers who pay on time and who have more money to pay. This increases the quality of your customer account and also the amount of money you can receive in funding from your factoring partner.
Second, however, it takes away those bad apples who don’t pay on time or who may not have the means to pay you. If you are suspicious of a clientele that doesn’t regularly pay on time, it may be worth getting a factoring partner to help you weed out the bad from your customer accounts and attract higher profile clients.
8. No Debt
Unlike traditional bank loans, factoring doesn’t force you into debt. It’s really simple. Because factoring isn’t a loan and is built solely off the strength of your account, you will never have to worry about swimming debts and paying back an institution when you are already short on cash.
With factoring, you can simply operate in the comfort that you won’t be asked to pay the money back. This means that you will be able to grow your business without reservation, while enjoying access to increased funding whenever you need it.
In other words, factoring is a win-win situation and is one that you should highly consider for your business today.
9. Supplier Discounts
Oftentimes, suppliers offer certain discounts that could benefit your business. If you have to wait for your bank loan to get these discounts, however, you could be missing out. Oftentimes, bank loans take too much time to process and cause you to miss out on those killer deals that would have greatly benefited your business.
With factoring, you never have to worry about this again. With fast borrowing, you will be able to purchase your supplies at discounted rates. This means that you will be able to save money that could be used to grow your business in another way.
Growing your business is all about the proper allocation of resources. By taking advantage of discounts through factoring, you will be able to put more money into your business. This is great for those businesses that are looking for that competitive edge in the market.
10. More Money, More Growth
On a similar note, factoring allows you to grow exponentially. Unlike with slow bank loans, factoring allows you to get your money quickly. This lets you make those urgent payments, and it also gives you the freedom to start making quality investments in your business.
But that’s not the best part. Factoring actually rewards you for your growth. The bigger you get, the more money you receive. That’s because larger customer accounts allow for more money. It’s a cycle that never ends as long as you keep growing.
And with factoring there to help you grow, you can ensure nearly unlimited growth as long as you play your cards right. And to think—all this without having to worry about those time-consuming invoices!
One thing is clear: factoring provides you and your business with a new way forward. If you are looking to take the next step in the marketplace, factoring may be your go-to option. This innovative business strategy allows you to get money in a flash. This means that you never have to worry about missing payroll or not having the funds to meet your expenses.
Simply put, factoring is financing method your business needs to take it to the next level. If you are tired of waiting on bank funds or having to repay huge debts (with your own property as collateral), then it’s time to consider factoring as your funding method. With added convenience and security, factoring is a reliable financing method that can help you get large amounts of cash when you need it.
So check it out today! There’s no better time than now to get your business on the right track—and growing!
- National Transaction Corporation
- February 19, 2023 | 2023-02-19