If you thought managing the finances of your home life was difficult, you probably haven’t tried being in charge of business finances. It puts a whole new spin on money management. A few money problems here and there are perfectly normal. It’s not uncommon for companies to get cash flow assistance through loans or accounts receivable factoring through companies like Universal Funding. Here are some common money problems businesses may run into, and how factoring can be the solution.
Credit plays a huge role in the types of financing that you qualify for. It’s important that you build up good personal and business credit. Knowing and tracking your credit score can help you to make sure you are doing everything in your power to qualify for the best financing options, including loan amounts and interest rates. Invoice factoring is a great alternative for businesses with poor or no credit history.
It can sometimes seem like no matter how hard you try, you just don’t quite reach the cutoff for the perfect loan rate. Perhaps you keep getting denied for loans. Even if you do get approved for a loan, you then need to work out a way to pay the loan back plus interest. While loans have a useful place in business, worrying about your interest rate and making repayments is stressful. Invoice factoring is a financing method where there is no repayment.
Factoring Can Be the Solution
Accounts receivable factoring can be the solution no matter what your credit score or loan problems are like. It is not a loan, so you don’t have to worry about qualifying for an interest rate and making repayments. Since you’re not qualifying for an interest rate, the credit score that matters most is that of your customers. If you’ve been turned down by traditional lenders or need money faster than a week, factoring may be a better fit for your needs. It’s as simple as that.
Call Us to Learn More
There are no gimmicks and little stress associated with factoring through a reliable company like Universal Funding. To learn more about invoice factoring and other financing options, contact us today, or fill out our online rate form.