7 Busted Myths About Invoice Factoring
Just saying the words ‘invoice factoring’ leaves a bad taste in the mouths of most business owners. There’s a few myths about invoice factoring that cloud the truth of it actually being one of the easiest, fastest ways to turn invoices into much-needed cash.
To help, NBC’s Business Financing Advisors got to work busting the seven most common myths about invoice factoring—read on and get informed!
7 Busted Invoice Factoring Myths
- Invoice Factoring Companies Take Control of Your Clients
This myth does have some truth to it. Dealing with factoring companies that constantly hound your clients for payments and information can be a terrible experience for both you and your customers.
However, there are very few financing companies including NBC that removes the contact between your clients and factoring companies, letting you regain control over your customers, and eliminating frustration.
- Clients Will Think Less of You for Using Invoice Factoring
No, they most likely won’t. In fact, the vast majority of clients have gotten so used to business owners using PO financing to cover invoices, that it has become largely standard among most wholesale, distribution, transportation, manufacturing and retail businesses.
- It Takes Weeks to Months to Fund Through Factoring
Not when you find the right financing company. Yes, most factoring companies take anywhere from weeks to months before you see any capital coming your way.
Through NBC’s expedited and streamlined process, you can turn your invoices into cash on-hand between 1-4 days after applying.
- Factoring Lacks Payback Transparency
There are now invoice factoring lenders that provide full transparency prior to you signing up, letting you pay off your borrowed factoring capital as you would a small business loan!
- Factoring Doesn’t Cover Enough of Your Invoices
It’s true that most invoice factoring companies only cover a small portion of a company’s invoices, which can wind up hurting more than helping in the long run.
The truth is, invoice factoring products can cover up to 90% of all invoices—no matter what your factoring company may tell you. NBC is one of the few financing companies that offers this level of coverage.
- The Rates Are Way Too High
They don’t have to be, despite what you may have been told by past financing companies. With full transparency, NBC offers invoice factoring with lower rates and longer terms than the vast majority of traditional factoring companies.
- Invoice Factoring Approval Qualifications Are Too Tough to Meet
Through traditional factoring companies, yes, approval can be so difficult, you’ll start to wonder how any business can get factoring funds at all.
The answer is, they get it through financing companies like national business capital. Invoice factoring is one of, if not the easiest option to get approved for , with no time in business, annual revenue, or FICO required!
Where to Get Invoice Factoring
Give NBC’s live representatives a call at (877) 482-3008 for a free consultation, or apply online by filling out our 1-minute online application to receive funds in as little as 24-72 hours!