Conventional business loans are one of the most popular finance programs available to companies today. These loans provide businesses with sound solutions to a range of funding concerns but they are not the perfect solution to every situation. In fact, many businesses have found themselves in need of a financing solution that is a simple, straightforward alternative to a conventional loan. There are any number of reasons why a business loan might not be the right financial solution for your organization; the circumstances facing decisions makers simply may not accommodate the particular requirements that loans typically carry. Many major corporations have turned to the services of a factoring company; you can, too.
Time is Money
Companies may find themselves facing circumstances that call for a greater amount of money than there is working capital available. Addressing rapidly developing situations, taking proactive measures against loss, or pursuing a valuable investment opportunity all call for a quick response by decision makers. While the process of applying and qualifying for conventional business loans can take several weeks, a factoring company can provide you with essential capital in a matter of days. This timely response gives you the opportunity to gain an edge on circumstances that demand fast action. A considerable amount of money can be raised in a short amount of time thanks to factoring.
Accounting Convenience and Bookkeeping Advantages
There are a number of other reasons why factoring may be superior to a loan, even when time is not an issue. The structure of factoring agreements can make this funding option more convenient in terms of accounting and bookkeeping. For instance:
- Factoring does not require the use of lines of bank credit, thereby preserving them for other applications
- Your company’s credit history does not impact the financing terms; this is based on client credit history only
- Budgeting and expense forecasting is simplified through easy to understand terms
- Factoring lines are scalable, so as your company grows, you will have access to more funds
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If you would like to explore this powerful loan alternative, just use our online rate form to get started.