Starting a new business is exciting but complex. At the beginning of a new venture, business owners often face a chicken-or-egg dilemma: they need capital to grow but funds are readily available only to established companies that are way past the initial stage.
Today we’ll see how Factoring can help budding businesses solve this and other common challenges.
Solving the Chicken-or-Egg Dilemma
As we mentioned earlier, people starting a business often face an almost universal dilemma. Young businesses need funds, but since they don’t have credit history, banks won’t lend them money.
Factoring of accounts receivable solves this centuries-old problem by shifting the focus away from your company and onto your clients. Since what a Factoring company does is buying your unpaid invoices, the creditworthiness of your customers becomes more important than that of your business.
A Fast Infusion of Cash
New businesses should be able to turn on a dime to take advantage of unexpected revenue opportunities, but this is next to impossible with a bank. Even assuming that a bank considers a new business for a loan, the approval process is so long and complicated that any opportunity is long gone by the time you get an answer.
By contrast, approval times in Factoring are much more agile. In fact, at ACS Factors you get approval in just hours. Do you need to buy more inventory, pay for repairs, or settle an unexpected bill TODAY? We are here to help!
Factoring Protects You From Debt
Factoring your unpaid invoices is a smart way to avoid incurring debt. When you factor your receivables, you are not taking out a loan but using your own money. The factoring company is essentially purchasing your receivables and taking care of the collection process in exchange for a small fee.
By avoiding excessive debt with the help of Factoring, you can start building a good credit history, which can give you access to other forms of financing down the road.
Factoring Helps You Avoid Time-Consuming Tasks
Starting a business is no small feat. You often find yourself taking care of everything from answering the phone to networking and making sure that all bills are paid on time. With so many hats to wear, a little help is always welcome. Factoring can take care of some of the most time-consuming aspects of your business.
When you factor your accounts receivable, you forget about the collecting process, which often involves investing a lot of time following up with slow-paying clients. This way, you’re not only freeing up money but also time you can devote to move your business forward.
At ACS Factors we are here to help you turn your invoices into immediate cash. When you choose us you get unique benefits that include:
- No minimum funding
- Easy access to owner/CEO
- Month-to-month deals
- No early termination fee
- We take the risk if your customer cannot pay
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 (info@acsfactors.com), telephone (909-949-5599), or through our social media accounts on Facebook, Twitter, and YouTube to learn more about the benefits of turning your invoices into immediate cash!
