Invoice Factoring to Access

Use of Invoice Factoring to Access Much-Needed Funding is Quite Popular Now

The growth of alternative business funding has brought with it a number of innovative funding options. Invoice factoring is one of those innovations that is helping many businesses to access easy funding whereby the lender leverages the pending invoices of the borrower. This kind of funding is really helpful for construction industry contractor firms and many others that receive payments in a phased manner. Of course, there are many other modes of funding that small businesses can access from alternative sources of capital and it doesn’t really matter how they get the funds. 

These small businesses anyway don’t get any funding from traditional lenders like banks and big financial institutions. Hence, they are not concerned with the mode of business funding as long as it is available easily and with minimum hassles. They don’t mind paying a little more to access the funds when they know that their source of funding is reliable and will provide them the credit in a quick time. Small businesses have unique funding requirements that present a different set of risks which the alternative lenders understand much better than traditional lenders. 

Flexible funding that you get in quick time 

Compared to the inflexible and slow process of loan approval by traditional lenders, you will experience real speed and flexibility with US business funding companies. The credit they provide is mostly unsecured except for very big amounts that they lend to larger businesses and they do it very fast. 

Unsecured credit means you need not provide any collateral to secure the debt, which traditional lenders insist on. All that an alternative lending company needs from you is your bank account statement of the last couple of years basically to check the frequency and volume of your bill receipts. They need that to ascertain your ability to repay the debt.  

Your pending invoices are valuable assets 

If you are running a construction contractor firm, your need for Business Funding would be very high because of the steep cost of operations and the phased manner of payments that you receive. You would usually receive the payment for completed projects in 60-120 days which is a long time but that’s how the industry works. 

On the other hand, you would have to get going with the next phase of the project or begin work on a new project. Additionally, you have working capital expenses to meet every month. Most contractor firms face a lot of difficulties balancing these kinds of challenges that disrupt their cash flow. Funding based on construction invoice factoring is provided by Alternative lenders, which helps you manage these challenges easily.  

Deal more effectively with a working capital shortfall 

Businesses of all sizes, not just small businesses, dread any shortfall in their working capital because it includes payroll commitments or wages of employees. There is no way you can delay the payment of wages because that could bring your entire operations to a standstill. You can easily get working capital funding from alternative sources to meet such situations and ensure that your operations continue smoothly. 

Construction industry operations are quite expensive as you not just need skilled workers but also a whole lot of heavy-duty capital equipment that goes through a lot of wear and tear. You cannot afford to stop or slow down operations due to equipment breakdown or worse, unavailability. Recover your income and meet these operational expenses is a part of your working capital cost and alternative business loans are ideally suited to meet your requirements.