Regardless of the size and scope of your organization, Factoring should be on the top of your list of financing solutions. However, there are three reasons why Factoring is perfect for small businesses.
Factoring Is Easy to Qualify For
Qualifying for traditional loans is one of the most common roadblocks that small businesses must face.
Since banks hate risk, applying for a loan with them can be a long and exhausting process—and you’re not even guaranteed to get approval!
This approach puts small businesses at a disadvantage because they often can’t meet the stringent credit requirements of a bank. Just to cite a couple of examples, they may lack a detailed business plan, or may have limited cash flow. These are common problems in the world of small business, but banks don’t see it that way.
Factoring, by contrast, is really friendly to small businesses. Forget about complex paperwork and long waiting periods. With factoring, you get fast cash without having to worry about your credit score or the capacity of your business.
No Monthly Installments
Even if your small business gets approved for a bank loan, the monthly installments can put a strain on your cash flow.
Studies show that this is no small matter: cash flow issues are one of the main reasons why small businesses fail.
Add to this that falling behind in your payments may put your assets at risk, and you’ll want to be very careful before even considering applying for a bank loan.
With factoring, on the other hand, there’s nothing to repay because you are selling your invoices, which already belong to you. Factoring provides you with the funds you need and allows you to move forward toward the next milestone in your business plan.
Factoring Eases the Burden on Your Small Business
It’s no secret that small businesses don’t always have the same capabilities as larger companies.
For example, your business may have a small collections department. Or perhaps you have to act both as business owner and collections executive.
Needless to say, this way of overextending your workforce or yourself creates stress and hampers the efficiency of your organization.
Factoring is more than a way to get a fast infusion of cash. It also helps you streamline your processes and eases the burden on your small business. When you factor invoices, the factoring company takes care of the collection process for those receivables, freeing up resources you can use to do more business and bolster your bottom line.
ACS Factors Helps You Turn Your Invoices Into Immediate Cash
At ACS Factors, we help you get the capital you need to move your freight business forward. We are located in Upland, California, and have many clients in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.
Reach out today by email (firstname.lastname@example.org) telephone (909-946-5599), or through our social media accounts on Facebook, Twitter, and YouTube, and start converting your accounts receivable into cash today!