Small and medium sized businesses are looking for capital to take advantage of pent up demand and the growing economy. Banks are seeing increased demand for loans and are approving as many loans as possible, but that still leaves over 80% of applicants turned down for a bank loan. Business owners are searching all avenues to find working capital. This includes angel investors and alternative financing. Raising money will always come with a cost. It’s critical that business owners understand the costs, both short and long term.
There’s many things to consider before selling equity to an investor. From personalities to a clear understanding of involvement and contribution the biggest cost to the business owner is that they have now lost a portion of their company- forever. And like a marriage, not all partnerships work out as planned. Unless the business owner has huge demand that must be met now or the market will go away, selling a part of your company is not worth it in the long run.
Alternative lenders have risen to fill the demand for more working capital. Again, business owners need to proceed with caution. Some websites will promise that getting a loan from them is fast and easy. What they don’t tell the business owner is that their fees can be double or triple the amount borrowed!
This is where established factoring companies differentiate themselves. Traditional factoring companies will process applications quickly without an upfront fee and clearly explain the cost of factoring. Factors base their credit decision on the strength of the company’s customers allowing them to work with companies that have been already turned down by a bank. Most companies use factoring as a steppingstone helping them to grow their company to the point that they are either self-funded or qualify for a bank loan.
American Receivable is a 43 year old traditional factoring company. ARC remains owned and operated by the original founders. Prospects never pay an application fee and are qualified on the credit strength of their customers, not their credit. Unlike bank owned factoring companies that makes their decision based on your personal credit score and sets a credit limit on your business. Our sales and administrative staff all have strong backgrounds in finance and customer service. This ensures our clients that even day to day transactions are handled to benefit our client. American Receivable’s longevity is based on our client’s success.
Schedule a conversation to learn more how American Receivable will provide the cash you need to thrive.
Schedule a time to chat: https://americanreceivable.com/schedule-an-appointment/