Special Situations
Accounts receivable factoring, also known as invoice factoring, can be a dependable cash flow solution for your company in times of need. Invoice factoring converts unpaid invoices into cash in as little as 24 hours. However, compared to traditional bank loans, this could take months to get approved, and if you are a new business owner, you may not have the creditworthiness to get funds quickly.
Special Situations:
1. Start-Ups
Working capital is required for new and developing businesses to survive. Unfortunately, many companies start with little to no cash reserves. Invoice factoring provides start-ups with the funding they require to cover day-to-day expenses and expand as the business grows.
2. Poor Credit or No Credit
Getting business loans and lines of credit can be difficult for businesses with less-than-perfect credit. Even if they get one, the supply frequently does not keep the business running. Factoring considers your clients’ creditworthiness rather than your company’s creditworthiness. Businesses struggle when customers are slow to pay. Factoring is helpful in this situation. It provides you with the funds you require to run your business successfully.
3. Tax Issues
When it comes to financing and cash flow, a company may face challenges due to tax issues or liens filed against it. Banks are highly hesitant to lend to a company with a tax lien. Account receivable factoring will provide the cash flow required to keep your business running and expanding while resolving tax lien issues.
4. Bankruptcy
Banks will not risk providing a firm with the working capital required to survive during a bankruptcy reorganization. Accounts receivable factoring is the best post-petition financing source. When calculating, we take your customers’ risk into account. If they are creditworthy, we will give you the funds you need to restart your business as soon as possible.
