Are you considering applying for a bank loan to fund your new project, buy equipment or pay your employees? Do you have cash flow problems because most of your earnings are tied up in outstanding invoices? Are you looking for quick financing to streamline your working capital? If yes, then you might want to consider applying for invoice funding rather than a bank loan.
Here are a few reasons you should consider invoice factoring as a funding alternative.
You Get Cash Flow Without Debt
Invoice factoring finances unpaid invoices/account receivables, it is not a loan that adds debt to your balance sheet. This means unlike unsecured loans where banks ask borrowers with low credit score to provide collateral, invoice factoring relies on the credit worthiness of your customers. By opting for this business funding method, you have to make monthly loan payments or provide collateral as a safety net. It helps borrowers keep a clean balance sheet without adding to the company’s liabilities.
You Get Quick Cash Flow
A majority of the requests for invoice factoring through Carter Funding are approved within 24 to 48 hours and funding is made within 3 business days. This means that the you don’t have to wait for weeks to get your loan application approved like if you were borrowing money through a bank.
You Do Not Have Long Term Contracts or Credit Limits
Unlike bank loans that are long-term and contract based, factoring has no long term contracts, maximums or minimums. This business funding alternative gives you the flexibility to pick and select how often and what types of invoices you want to factor. As your sales increase, so does the your access to funds.
You Get Low Factoring Rates
Over the years, the cost of invoice factoring has come down significantly. Advances are now available up to 90 percent and factoring rate is as low as 1% percent. If you are new in the industry and looking for quick business financing solutions to take advantage of a new opportunity that might not come again; then get in touch with CFC.
Carter Funding provides quick factoring to startups and fast growing companies. Click here to get started now!