If you have not been a part of the industry for a long time, then you are unlikely to have more than a couple of options as far funding solutions are concerned. Unfortunately, even these options may not come in handy if your credit score is not that good. After all, it is undeniable that a bank is unlikely to entertain you in such a situation. Even if the bank agrees to process your application, you may have to wait for at least a couple of weeks before you actually get the approval. In case, it is imperative for you to increase the cash flow as soon as possible, you may not want to delay the introduction of some fresh funds anymore.

Exploring other options

However, if you think about, then you may not have many options except for the one which will take you to a private lending company. If you are comfortable with the idea of paying a hefty interest every month, then you can easily embrace this option especially if you are in a hurry. Interestingly, account receivables factoring can save you from the trouble of having to take care of a whopping interest payment month after month. If you do business on credit and have some invoices from your customers, you do not have to necessarily approach a lending company and should rather get in touch with a company that's into factoring.

Reasons for choosing factoring

If you are thinking why you should resort to account receivables factoring, then you must realize that you are already out of options, and any further delay is likely to impact your business in more ways than one. Moreover, if this specific funding solution has no known demerits, then should not have to think twice especially if a large part of your profits is held up in the form of invoices. If you choose factoring, you will not get an opportunity to take advantage of your invoices, but can also increase your cash flow without any difficulty.

Things to consider

If your invoices range between $10 and $50, then you may have to look for alternate funding solutions as most of the companies engaged in factoring are likely to acknowledge invoices that have a minimum value of $100. At the same time, if your business is too small, you may want to specifically look for a company that entertains businesses of all sizes and does not discriminate.