Qualifying for factoring is simple and easy. Even you are unable to qualify for a high-risk loan, you can still qualify for factoring.
If you are considering using an invoice factoring company to finance your account receivables (AR), it’s important to know if your business qualifies. We posted a short list of industries that commonly use AR factoring services. It’s important to know that commercial factoring is strictly a business to business industry. If you do business with other businesses, then you can sell your account receivables to an invoice factoring company. The invoice factoring industry is mostly concerned about the strength of your invoices, rather than the length of time that you have been in business. It does not matter if you are a large company or a start-up business. If you have good quality invoices, you’re a great candidate to factor your aging receivables.
Start-Up Business Factoring Start-up businesses face unique challenges. One of the biggest issues is raising capital to finance your newly formed company. Without a history of success and profitability or with a short credit history, it can be difficult to qualify for loans and raise needed funds. Many start-up companies do not have the ability to get traditional financing from a bank. If you are a newly formed company and you are able to get money from a bank, it’s going to be at offensive rate. Once you have a loan in place, you now have to start paying this back. This is why most start-up companies turn to invoice financing companies to fund your aging invoice. When you factor your invoice you get immediate cash at low rates, without having a bank loan that you need to pay back.
Established Business Factoring Alliance One LLC recognizes that your established business continues to face challenges. Slow paying customers, too much debt, too many liabilities, poor credit, low inventory, and competition are just a few of the situations that put a strain on your cash flow. Factoring is an excellent tool to help established businesses overcome these challenges and achieve their goals. If you have a growing business, you need to hire a larger staff, extend credit to additional customers, increase your net terms to be competitive and possibly have the added expenses of moving into a larger, more expensive location. To overcome the working capital issues that your business faces, many well established companies tend to turn to AR Financing Companies to overcome the cash flow problems.
Are Credit Issues a Problem when Factoring my Invoices? Do you have poor credit? Are you concerned that due to your poor credit that you might not want be able to use an invoice factoring company? Are you concerned that you might be declined? Don’t be, Account Receivable Financing or Invoice Factoring is perfect for this situation. Factoring is not a bank loan, we simply purchases your aging invoices for immediate cash. If you have below par credit, you can still factor your invoices. Factoring companies want solid invoices, we do not care about your credit scores. Apply Now
