Applying for a business loan? Most business owners in need of money instinctively turn to one of two options - either a business loan or a business line of credit. Although business loans and lines of credit are well known products, they are very hard to get. Out of a hundred business owners, you can count the number of those who would qualify with the fingers on one hand.
In certain instances, invoice factoring may be a better and easier to obtain alternative. There are three conditions that can determine whether factoring is a better alternative than a business loan.
Are you affected by the slow payments of your clients? Do they take up to 60 days to pay? Are you turning away bigger sales because you lack working capital? How good is the growth potential of your business provided you have the right financing in place?
If you answered yes to these questions, then chances are that factoring your invoices will be better for you than more traditional business financing products. The ordeal of having to wait an inordinate amount of time before payment is eliminated through invoice financing, as you can customize it based in your needs, such as paying salaries, rent and investing in new opportunities.
Unlike business loans, there are no use limits to factoring, as it is all predicated on the potential of your company to sell more units or attract more customers. The more your business grows, the more financing you qualify for. No strings attached. This makes it an ideal product for businesses that have significant growth potential.
Factoring, which some people refer to as receivable factoring, is very simple to understand. You would need two copies of your invoices - one billing the customers, and another copy, a confo copy to be sure, for the factoring company. The factoring company, in turn, advances you up to 90% of your invoice and waits to be paid by your client. Once this is accomplished, that would settle the transaction conclusively.
Ergo, the process of financing your invoices totally assuages any concerns of slow payment. You accelerate your cash flow, enabling you to pay your obligations, take new opportunities and grow your company.
In terms of cost, factoring is a very competitive product. Factoring fees range from 1.5% to 3% per month, making it an affordable product. So if you are operating a growing business with lots of promise, let invoice factoring solve your financing woes.
In certain instances, invoice factoring may be a better and easier to obtain alternative. There are three conditions that can determine whether factoring is a better alternative than a business loan.
Are you affected by the slow payments of your clients? Do they take up to 60 days to pay? Are you turning away bigger sales because you lack working capital? How good is the growth potential of your business provided you have the right financing in place?
If you answered yes to these questions, then chances are that factoring your invoices will be better for you than more traditional business financing products. The ordeal of having to wait an inordinate amount of time before payment is eliminated through invoice financing, as you can customize it based in your needs, such as paying salaries, rent and investing in new opportunities.
Unlike business loans, there are no use limits to factoring, as it is all predicated on the potential of your company to sell more units or attract more customers. The more your business grows, the more financing you qualify for. No strings attached. This makes it an ideal product for businesses that have significant growth potential.
Factoring, which some people refer to as receivable factoring, is very simple to understand. You would need two copies of your invoices - one billing the customers, and another copy, a confo copy to be sure, for the factoring company. The factoring company, in turn, advances you up to 90% of your invoice and waits to be paid by your client. Once this is accomplished, that would settle the transaction conclusively.
Ergo, the process of financing your invoices totally assuages any concerns of slow payment. You accelerate your cash flow, enabling you to pay your obligations, take new opportunities and grow your company.
In terms of cost, factoring is a very competitive product. Factoring fees range from 1.5% to 3% per month, making it an affordable product. So if you are operating a growing business with lots of promise, let invoice factoring solve your financing woes.
About the Author:
Making a well informed heavy duty office chairs decision has never been more important to you and your health.
No comments:
Post a Comment