Factoring Companies Vs Banks: Which Is The Best? - Other Classified Ads in Santa Teresa

Factoring Companies Vs Banks: Which Is The Best?

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A business that entirely depends on customers? or clients? payments for its daily operations can be frustrated when customers or clients take longer to pay. It is the responsibility of any business to look for alternative funding when such thing occurs. It may be taking loans from banks or advance payments from factoring companies.

Factoring companies usually buy the unpaid invoices and offer advance payments which is nearly equivalent to the amount on the invoices but this depends on the clients? or customers? credit or payment histories. They then charge a fees and give the remaining amount to the business. Just like banks, these factor companies charge different fees or rates. Also, they have hidden fees as well as penalties. Unlike banks, the advance payments are never considered as debts. The factor company will deduct this amount and fees once the customer or client pays.

Banks usually place hurdles in the application process and if you can?t meet some of the requirements, your loan application is automatically rejected. Advance payments given by the factor companies on the other hand do not need lots of requirements. In fact, it is not even based on your companies? net worth or available assets but only on your clients? payment or credit histories. It means that even if a bank rejects your loan application, factor companies can still accept you. The application process for advance payments from factor companies is simple and the approval rates are high. It is however important to note that if you are receiving payments after delivering services or goods, you are not eligible to apply.
August 24, 2016
Interstate Capital Corporation P. O. Box 1229, Santa Teresa, New Mexico
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Factoring Companies Vs Banks: Which Is the Best?