What’s the difference between invoice factoring and traditional bank loans? It’s a question we hear a lot, so in this article, we’ll take a look at the similarities and the differences to help you decide which is best for your particular situation.
Business owners have more options available for financing today than at any other time in the past. In addition to traditional lending avenues such as SBA loans, community bank lending, equipment leasing, factoring, and asset based lending, there are a large number of online business lending companies.
Factoring has been around in some form or another for centuries, yet it is still a relatively untapped source of finance for many businesses. In fact, invoice factoring is typically a small part of curriculum in many university finance departments. Let’s take a look at the history and evolution of the world of factoring.
It is a pleasure to write this testimonial for American Receivable. I’ve been associated with the company for over 20 years. They assisted me in the initial start-up of Systems Source, Inc. in 1995 and have stood by me the entire time I’ve been in business, both the good times and the bad. Jack and Brad have truly been business partners.
In today’s time, many people cannot imagine running a business without the aid of technology, and the evolution of technology has changed the way we do business on a daily basis. Computers, software, apps, video, etc. have allowed companies to expand their businesses well beyond the borders of their home base. For factoring, it has created endless possibilities on how and where business can be done.
Small business finance can be confusing for many startups. Properly setting up your financial books is vital for the success of any small business. Accurate bookkeeping will help you better manage your resources, find strategies to minimize debt and forecast economic trends to help you make the most returns from your investment. Additionally, you need accounting records for tax purposes.