What about Bankloans ?

Why is invoice factoring a better option than using loans, overdrafts and credit cards?

With invoice factoring there are many advantages to using this method of obtaining funds, not only is it a relatively fast and simple process but there are many reasons why your business would be better off using this method than if it used a bank loan, credit card or overdraft. Below are just a few of the reason why:

 with invoice factoring you are not bound by fixed terms as you are with a bank loan.

 with a bank loan you would need to have established a good credit level, this is not the case with invoice factoring. If you are a start up company or not generated as much profit it won't matter.

 with a bank loan you could be forced to re pay your overdraft if the bank feels that you are not meeting your payments.

 with invoice factoring you won't be creating new debts as you would with a credit card or bank loan.

 with invoice factoring you won't be charged high interest rates or be made to pay for funds you have not yet used as you might with a bank loan.

 Banks will ask you for security to act as a guarantee if they feel they need it, this will be set against your assets which you could loose if you are unable to make payments.

 there is no set limit to the amount you receive with invoice factoring, as there would be with a loan or credit card, banks may apply a limit of they feel you will be unable to make payments.

 with credit cards there is always a risk of credit card fraud if your details get into the wrong hands, this cannot happen with invoice factoring.

 With invoice factoring we don't charge you for late payments, as we are responsible for collecting payments from your customers.

 Bank loans, overdraft and credit cards often have lengthy and complex processes, which are time consuming, and often frustrating and you are still not guaranteed that your application for credit will be accepted.

These are just a few reasons why invoice factoring is a better way of accessing cash than credit cards, loans and overdrafts. Invoice factoring can prove to be a far better method and it means that you are able to access funds without getting into debt as the factoring company take on the responsibility of collecting the invoice amount from your customer, giving you time and money to use elsewhere.