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, National’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 National 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 National’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. National 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, National 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 National’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!
National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.
Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans and business lines of credit, as well as a full suite of revenue-driving business services.
We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
Joseph Camberato, CEO at National Business Capital & Services, developed a passion for business at a young age. Joseph has a true respect for anyone who owns a business and enjoys engaging them in discussions of how they “made it happen.”