If you are aware of factor financing, you may know that you can leverage your Accounts Receivables with a Factoring Lender to get quick access to working capital. However, you may be concerned what your Customers will think when they have to send their payments to a different address.
- Lending aspect aside, it is not unusual for Businesses to create a different location to receive payments on Invoices, whether a physical location or an electronic ACH location.
- The Factoring Lender works hand in hand with you to ease the transition for payment destination on your Invoices.
- Many of your Customers are already sending their Invoice payments for other B2B purchases to Factor Lenders whether they know it or not.
- Factor Lending, while a niche financing solution, has been utilized by businesses in need of quick capital for 30 years.
- Businesses frequently leverage Assets, Property, Income and other collateral to obtain working capital whether it’s a traditional Bank loan or other financing solution; leveraging your Invoices is no different.
- The fact your business is borrowing money demonstrates strength, not weakness. You’re demonstrating your faith in your business by borrowing money to continue to grow your business.
Factor Financing is an affordable, fast, financing solution to help you leverage important aspects of your business–in this case your Accounts Receivable–to obtain the working capital you need. It’s easier to qualify for Factor Financing than traditional Bank Loans, especially during the pandemic paradigm when Banks are making loans difficult to obtain.
Factor Financing Qualifying Criteria:
- You must sell your Product/Service B2B
- Your Customers must pass muster for basic creditworthiness on their ability to pay Invoices
- Non-Progressive Billing
- Startups Acceptable
- Consistent Accounts Receivable practice
Let us ease your worry about what your customers will think. Learn more to see how this could be a solution to keep your business going during this pandemic. Email us at Curious@AuroraConsulting.biz.