Exploring funding options is a big decision for any business, but it becomes more complex when the business has little or no credit history. You may be frustrated with options to access cash for your new business, but examining alternatives to traditional lending avenues could be an answer to your cash flow problems. Bank loans are difficult for new businesses since the company usually has little or no credit history. However, an excellent funding solution for companies without credit is available. You can utilize accounts receivable financing as a way to access cash. Financing your receivables allows you to sell invoices and collect an agreed-upon payment for them from a finance company.
How Your New Business Can Get Approved For Cash Through Accounts Receivable Financing
Financing your receivables, also known as factoring, gets you funding without the lengthy business loan approval process. Since you are selling your open invoices, the finance company is not as concerned with your credit history. They are making an approval decision based on a variety of other indicators:
- The credit standing of the customers associated with the invoices you are selling
- Trends in these customers’ payment cycles
- The invoice amounts
- Your sales volume
- The current climate of your industry
These variables are not as focused on your business history or credit standing as a conventional business loan application would be. In fact, the approval process for invoice factoring is often significantly shorter and less complicated than the weeks or months required for bank approval. Your business can get approved for factoring in a matter of days, and you will receive the cash for your invoices within a day of approval.
Find Out More About Funding Your New Business
You need to hire employees and purchase supplies quickly, but a bank loan involves a long waiting period and is not favorable to businesses without credit. Universal Funding can provide your new business with cash quickly through accounts receivable financing. Fill out our online rate form to request a no-cost consultation today.