When business owners need funding, they have a decision to make: factoring or bank loan? Both can be good sources of cash in times of need, but they work very differently. Let’s take a closer look:
Not every business is financially sound enough to get a bank loan. This is especially true of newer companies that don’t yet have a history of financial performance. On the other hand, factoring uses invoices as collateral, giving your company the funds it needs! We look more closely at your customers’ credit than your financial history.
Banks loans can take a long time, because getting approved takes operating history and credit scores into consideration. Factoring companies like RMP Capital can help get you cash fast — in just a few days, at most.
With a bank loan, you’ll receive funding in one lump sum that needs to be paid back in full, plus interest. With factoring, you’ll get a steady and predictable cash flow without incurring additional debt. You have the option of selecting which invoices to factor and how often. After all, shouldn’t you be in control of your cash flow?
Bank loans aren’t bad, but they’re not for everyone. If you think factoring might be the solution your business has been searching for, contact RMP Capital today at (631) 738-0047. You can also visit our website to learn more.