7 Busted Myths About Invoice Factoring | Purchase Order Financing


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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, National’s Business Financing Advisors got to work busting the seven most common myths about invoice factoring—read on and get informed!

7 myths about invoice factoring

7 Busted Invoice Factoring Myths

  1. 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.
  2. 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.
  3. 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.
  4. 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!
  5. 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.
  6. 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.
  7. 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!

Last Updated on October 12, 2018

National Business Capital helps entrepreneurs secure quick and fair financing to save time and cultivate sustainable growth.

Our stress-free online platform is designed for simplicity and speed, helping business owners go from application to approval in a matter of hours. And while we remain a leader in the Fintech industry, our clients agree it’s our personalized service and award-winning team that sets us apart.

From SBA loans to lines of credit, to equipment financing, and more, business owners can access all the different financing programs available to them in one place. Through our streamlined process, we have helped clients secure $2 billion in financing since 2007, and, more importantly, we’ve helped entrepreneurs save a tremendous amount of time and grow faster.

About the Author, Joe Camberato

Joseph Camberato, CEO of National Business Capital, developed a passion for business at a young age. Joe started his company in 2007 in his spare bedroom and has grown to secure over $1 Billion dollars in financing for small business owners nationwide. National’s team has an amazing culture and has been name the #1 Top Workplace on Long Island 3 years in a row and counting. Joe is a trusted financial expert who’s published more than 2,000 articles in the last 3 years. His articles have generated over 5 million page views and has been featured on blogs such as Google News, Yahoo, CNBC, Forbes Magazine, etc. His passion has also inspired him to build the "GrowByJoe” YouTube channel where he shares his insights into small business trends and tips for growth. Joe also holds a seat on Forbes Finance Council and is an active member of the Young Presidents' Organization (YPO), a global leadership community.





Disclaimer: The information and insights in this article are provided for informational purposes only, and do not constitute financial, legal, tax, business or personal advice from National Business Capital and the author. Do not rely on this information as advice and please consult with your financial advisor, accountant and/or attorney before making any decisions. If you rely solely on this information it is at your own risk. The information is true and accurate to the best of our knowledge, but there may be errors, omissions, or mistakes.