{"id":1750,"date":"2021-06-23T08:02:36","date_gmt":"2021-06-23T08:02:36","guid":{"rendered":"https:\/\/capflowfunding.com\/invoice-factoring-services-funding-advantages-over-a-bank-loan\/"},"modified":"2024-10-08T11:38:19","modified_gmt":"2024-10-08T11:38:19","slug":"invoice-factoring-services-funding-advantages-over-a-bank-loan","status":"publish","type":"post","link":"https:\/\/capflowfunding.com\/invoice-factoring-services-funding-advantages-over-a-bank-loan\/","title":{"rendered":"Invoice Factoring Services – Funding Advantages Over a Bank Loan"},"content":{"rendered":"
In the past, taking out a bank loan was the most common way to get business financing. However, in recent years, banks have become more stringent with their lending requirements, making it harder to secure a business loan. This has resulted in a rise in the popularity of alternative business financing options, such as invoice factoring. However, even with the shortage of bank loans, some business owners remain skeptical about factoring. Understanding how invoice factoring services work and the advantages they offer will help you determine if factoring is the right option for your business.<\/span><\/p>\n Invoice factoring services don\u2019t provide business loans. They simply provide an advance on money that is already owed to you from unpaid invoices. Keep in mind, these are not past due invoices but those still within their payment terms. Let\u2019s say you give a customer 90 days to pay their invoice but 60 days in, you need a boost in your cash flow. You can sell that invoice to an invoice factoring service for the majority of its face value – usually between 75 to 90 percent of what is owed to you. Once the invoice is paid, the factoring service will send you the balance minus a small factoring fee.<\/span><\/p>\n Besides the fact that traditional business loans have become difficult to obtain, Invoice factoring services offer other advantages as well.<\/span><\/p>\n It\u2019s not unusual when a business needs additional capital for the need to be urgent. Applying for a bank loan is a lengthy process littered with financial paperwork. Invoice factoring services requires minimal paperwork beyond the invoices being submitted for factoring. Approval for factoring can be received in 12 hours or less and you can receive funding within days.<\/span><\/p>\n With a traditional bank loan, valuable business assets are required for collateral. With factoring, no collateral is required. However, if your customer fails to pay the invoice, you may be held liable, depending on the type of factoring involved and the circumstances surrounding it. Only invoices issued to customers with a reliable payment history should be submitted for factoring.\u00a0<\/span><\/p>\n One thing business owners like to avoid is adding debt to their balance sheet. Since invoice factoring service provides an advance on money already owed to you rather than a loan, no additional debt is incurred.<\/span><\/p>\n Worried your credit isn\u2019t good enough to be eligible for invoice factoring? It\u2019s not your credit the factoring service is interested in – it\u2019s your customers\u2019 credit. In addition to being selective about the invoices you choose to submit, the factoring service will look into your customers\u2019 credit to determine if they have a reliable payment history and are a good credit risk.<\/span><\/p>\n Invoice factoring services allow you to spend less time collecting receivables. Once your invoices are sold, they are owed to and collected by the factoring service. This means you have more time to spend on other aspects of your business.<\/span><\/p>\n Business opportunities are often unexpected. Without proper cash flow, you could miss out on an opportunity for growth or an emergency could put your business at risk.\u00a0 Invoice factoring services can help your business grow and succeed.<\/span><\/p>\n When considering invoice factoring, it\u2019s not only important to understand how factoring works<\/span> but to choose <\/span>a reputable factoring provider<\/span><\/a> who cares about your success. Not sure if invoice factoring services are right for your business? We can help you figure it out.<\/span><\/p>\n \u00a0<\/span>Capflow Funding Group<\/span><\/a> will work with you to find the best funding solution to provide your business with immediate working capital. We also work with trusted partners to offer a variety of alternative financing options. Capflow provides <\/span>service<\/span><\/a> to many different industries with various funding needs.\u00a0 <\/span>Contact us<\/span><\/a> today and find out how invoice factoring can help grow your small business.<\/span><\/p>\n <\/p>\n","protected":false},"excerpt":{"rendered":" In the past, taking out a bank loan was the most common way to get business financing. However, in recent years, banks have become more stringent with their lending requirements, making it…<\/p>\n","protected":false},"author":1,"featured_media":1754,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_uf_show_specific_survey":0,"_uf_disable_surveys":false,"footnotes":""},"categories":[12,15],"tags":[],"class_list":["post-1750","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-invoice-factoring","category-small-business-financing"],"acf":[],"yoast_head":"\nFactoring Basics<\/span><\/h2>\n
<\/p>\n
Factoring Advantages<\/span><\/h2>\n
Quick Financing\u00a0<\/span><\/h3>\n
Collateral isn\u2019t Required<\/span><\/h3>\n
No Additional Debt<\/span><\/h3>\n
Your Customers\u2019 Credit Matters – Not Yours<\/span><\/h3>\n
Save Valuable Time<\/span><\/h3>\n
<\/p>\n
Invoice Factoring Services with CapFlow Funding Group\u00a0<\/span><\/h2>\n