The Advantages Of Using Factoring Financial Services

Posted by Daniel Lawrence on July, 2020

Operating a small to mid-sized business is a very complex process with a lot of decisions that must be made on a daily basis. When a business doesn’t have a consistent cash flow and are involved in B2B sales, one of the big decisions needed to be made is how to find funding.

Many businesses turn to business loans and lines of credit. However, both of these options can pose problems for small business as they require a top business credit score as well as several other requirements. A better option for these businesses is to consider factoring financial services in Dallas.

The Time Issue

Applying for a business loan or a line of credit is a long and drawn out process. At the very least you will need to provide extensive paperwork and records on your business income and debts.

Additionally, and this is a very important difference, outstanding accounts receivables will not be recognized by the bank or a financial institute. In effect, they have no positive impact on the company’s overall profits, but they can be seen as a negative factor if they are overdue accounts.

With factoring financial services, those accounts receivables are the only thing that is considered. This means that just a short online application is required since it is the creditworthiness of your clients and customers that are considered for approval. Typically, approval is provided in one business day with up to 80% funding of the total in the business account in days.

Without all the delays and complications associated with a bank loan or line of credit, choosing factoring financial services is obvious for many businesses. Virtually any company with accounts receivables of the minimal amount for the factoring service will be eligible for approval with just a simple online application. Visit Westwood Wealth Management for more info.