American Receivable
DFW: (972) 404-4726 | Austin: (512) 339-5112
invoice factoring versus bank loan

Factoring For Small Business Financing

Small business financing is a major challenge for many entrepreneurs. There is often a significant amount of money required to start a new business, and many entrepreneurs do not have the financial resources or credit history to secure a traditional bank loan. This is where invoice factoring comes in as an attractive solution for small business financing.

Invoice factoring is a type of financing that allows small businesses to access cash from their outstanding invoices. The business sells its invoices to a factoring company, which funds 85% to 90% of the invoice amount up front. This gives the business access to the cash it needs to pay bills, invest in growth, and cover payroll.

There are several benefits of invoice factoring for small businesses, including:

  1. Quick Access to Cash: With invoice factoring, businesses can receive a portion of the invoice amount within a few days, rather than waiting for customers to pay. This helps businesses keep up with their expenses and take advantage of new opportunities.
  2. No Collateral Required: Unlike traditional bank loans, invoice factoring does not require collateral. This makes it an attractive option for small businesses that do not have collateral or have limited credit.
  3. Improved Cash Flow: By providing quick access to cash, invoice factoring helps businesses improve their cash flow. This allows businesses to pay bills on time and invest in growth opportunities.
  4. No Long-Term Obligations: Invoice factoring is not a long-term obligation, unlike a traditional bank loan. Businesses only sell the invoices they need to and can stop using the service at any time.
  5. Bad Credit Accepted: American Receivable does not require a good credit score to qualify for factoring. This makes invoice factoring an attractive option for small businesses with bad credit.

In conclusion, invoice factoring is a valuable alternative solution for small business financing. It provides quick access to cash, does not require collateral, improves cash flow, has no long-term obligations, and accepts businesses with bad credit. If you are a small business owner looking for financing, consider the benefits of invoice factoring and see if it is the right solution for your business.

Call American Receivable today to get the financing you need for you business. 

Jack Stieber         972-404-4726

Brad Gurney       800-297-6652

Dakota Stieber   512-339-5112

Voted best Invoice Factoring Company for the last 15 years by

45 Anniversary Badge Round Logo


More Posts