Commercial receivable financing is a viable and effective means of extracting immediate cash from your outstanding invoices. $1 now is always worth more than a $1 later. The amount is strictly based on the value of the invoices from your customers. The invoices are sold to a factor, less a small discount, and your business gets cash now. The factor later collects on the full amount of the invoice when the payment term has ended.
A Viable Alternative
This is an alternative to asset based lending, working capital loans, and small business loans because your company’s credit history is not a major consideration. With this type of financing (factoring), the creditworthiness of your customers is what matters most.
The Bottom Line
With receivable (invoice) financing you avoid: restrictive covenants, tying up all your assets, giving up equity, relying on your credit for funding, the burden of periodic loan payments, and going through the yearly loan review process. Bottom line is that you should concentrate on what you do best – running your business and increasing sales.
Your business can find a factoring service that matches its needs in our funding source directory. Run a free capital search and you will get a list of lenders whose criteria you match 100%. Stop wasting your time with funding sources you won’t qualify with. Get your free matched list right away!