Looking for a Business Loan? Have you Considered Factoring Invoices?

Are you looking for a business loans? Obtaining business financing in the current economic climate can be a challenge. Most lending institutions have strict lending requirements and only lend to companies that can show a sustained profitability and verified financial records. Because of this, most small or new businesses can’t qualify and are left looking for a solution elsewhere. However, there is a solution that is available to companies that sell goods to other businesses or to the government. Although it is not suitable for every business, it can work very well if your biggest challenge is that you can’t wait 30 to 60 days to get paid for your invoices. If this is the case, then factoring invoices may be the right solution for you. 
The value proposition of factoring is very simple. You get an advance payment for your invoices, which gives you the necessary funds to pay employees and suppliers. The factoring company, in turn, waits to get paid by your customer. The whole transaction is settled once your customer pays their invoice. Factoring gives you the necessary funding to meet day to day expenses such as payroll and suppliers, putting your company on a more stable financial ground. Factoring companies have different financing criteria than most lending institutions. They provide funding based on the financial strength of your customers. This makes it an ideal product for small or growing companies whose biggest asset is a roster of strong clients. 
Also, invoice factoring can be obtained fairly quickly. Most transactions can be completed in a matter of days. Another benefit of accounts receivable factoring is that financing is tied to your company’s sales growth. Your financing facility grows in tandem with your sales. This makes it an ideal solution for companies that are experiencing fast paced growth. 
The cost of the service varies, based on the complexity of the transaction, then length and the financing requirements. Likewise, it also varies based on industry. Monthly factoring rates range between 1.5% and 3.5% based on these parameters. Although receivables factoring does not work with all companies, it’s ideal for companies that need immediate funds to pay employees or vendors, and who have clients that pay in 30 to 60 days.