Choosing Factoring Over Borrowing
March 21, 2010 4:09 am BusinessDo you have a business that is just starting up? Or perhaps you credit history isn’t that great or you have even filed for bankruptcy in the past? Are you experiencing a sudden seasonal growth and need help in your financing department? If you answered yes to any of these questions that factoring is perfect for you. Factoring is a great way to get a steady and predictable cash flow that will allow you to get ahead of your bills and give a great jump start to your company while building your credit.
Factoring involves getting an advanced payment before your customers pay the invoice. It is not a loan so you will not build up any debt at all but instead build up your credit and keep your balance sheet looking great which makes it easier for you to obtain other types of financing in the future. And the more sales you are producing, the more money becomes available to you.
Your chances of getting approved for factoring over borrowing from a bank is substantial. With factoring, you are approved based on your customer’s credit history rather than your own and also your potential for success rather than your financial performance history. Plus, when you borrow from a bank, you then owe them the money which could put you in debt where in factoring you are simple advanced your customer’s invoice payment.
Orange Commercial Credit is one of the top factoring companies out there that is known for their integrity, expertise, and experience. They are there to help you and help further your business opportunities by becoming your own personal credit department. They are available to you free of charge and you’ll come to find out that using them for your credit resources will be significantly cheaper than having your own credit department. Orange Commercial Credit also handles all of the work that has to do with processing your invoices. This includes posting the invoices to your computer, mailing your invoices and paying for the postage, depositing checks, entering the payments and also producing reports.
Choosing factoring over borrowing from a bank is one of the best choices you can make for your company especially if you are just starting out and need a jump start or you need to start building up your credit because of past problems. And Orange Commercial Credit is a great factoring company to start with.
