Many small businesses today are struggling with cash flow and unable to obtain bank loans. The process of getting a bank loan is not business friendly and is typically very involved and lengthy, and we understand the stress and frustration involved.
The application can take one to two months to complete. Banks want access to all of your company’s historical information including your financial statements, how long you have been in business, credit report scores, the industry you operate in, and any debt you have listed on the balance sheet. After consideration of these issues, most small businesses do not qualify for a bank loan, which leaves you without the much needed cash flow.
The Solution
A solution for small business funding is our accounts receivable factoring. Accounts receivable factoring is the process of selling your accounts receivables to us for a percentage of the value.
This can be a great alternative to traditional lending. Accounts receivable factoring has no lengthy application process, and your business is selling a valid asset – the invoice. Therefore, no debt is undertaken and there is no payment required, giving you access to cash for business operations within a few days of generating an invoice.
How it Works
The process begins with the initial setup through our online application, followed by your company sending in the invoices. We then fund a percentage of the invoice to you for immediate use, and we assume the invoice and managing all collections. Once we have final payment from the customer we deduct our fees and return the residual amount to your business.
We don’t base our approval of your application on your business credit score. Instead, we look at the credit reports and scores of your customers and the amount of time it typically takes your customers to pay the invoice. We used the latest in technology to complete these credit checks, allowing us to provide a very quick response to your application.
The single most important variable in accounts receivable factoring is the credit score of the buyer (your customer) in the invoice transaction because the buyer pays back the invoice to us. As a small business you can choose to sell invoices individually or sell your entire accounts receivables, allowing your focus to return to your business and not your accounts receivables.
As you can see, accounts receivable factoring can be a great solution to improving the cash flow of your company. By basing qualification on your receivables and customers, it is easy to have access to cash without any debt.
