Looking to expand your operation and reach your full potential? Bank loans and credit lines aren’t the only solution. Growing your business with factoring is a smart alternative — especially in today’s economic climate.
Here are five reasons to build your company with factoring:
1. Easier qualification. Even in the best of economic times, qualifying for a bank loan can be challenging. What sets factoring apart is that qualification is contingent upon your customers’ credit, not yours.
2. Quicker accounts receivables. Why should you have to wait 90 or more days to get paid from your customers? Factoring allows you to unlock the cash within your business immediately, making growing your business easier.
3. Added flexibility. Factoring is a means of accelerating payments you’ve already earned. You can choose to factor invoices as you please, and there’s no long-term commitment. Whenever you need cash — whether to order new materials, purchase new equipment, or meet payroll — all you need to do is factor an invoice or two.
4. More affordable. No, factoring isn’t free. But compared to the alternatives (bank and credit financing), it’s an inexpensive way to fund your business. No extraneous fees, just a set factoring discount rate.
5. Receivables management. Working with a factor helps reduce the various expenses associated with processing invoices and collections. We’ll provide you with online access to real-time data for your factored invoices.
Here at RMP Capital, we make funding your business easier! To speak with a representative about growing your business with factoring, give us a call today at 631.738.0047. For more tips, find us on Facebook, Twitter, YouTube and LinkedIn.