If you want to own a small business, you’re not alone. One study found that small businesses, those with fewer than 500 employees, make up for 99.7% of companies in the United States. However, not many people want to use their life savings towards funding a new business. Considering that, you’ll need to find a way to fund your small business. During this time, it’s wise to find a direct lender offering factoring services in your area. Here is why you should contact a factoring service for help with small business funding.
- Getting the Money Your Small Business Needs
Many small business owners assume that big banks will provide funding for this venture. However, these types of lenders focus on many factors before deciding whether or not to approve a loan. Therefore, you might find yourself wasting lots of time getting rejected by these types of lender. If you’re tired of hunting for small business loans, consider factoring your company’s invoices. - Fast Turnaround Time
If you’re trying to obtain funding through a bank loan, be prepared to wait. Unfortunately, traditional lenders might keep your waiting days or weeks before you receive funding. This might mean putting your business on hold until you’re able to improve your company’s cash flow. However, you won’t be waiting weeks after partnering with a direct lender. Certain lenders are even able to set up your account and provide initial funding in about 48 hours. - Not Having to Save for a Down Payment
While looking for loans for small businesses, you’ll find many lenders require a down payment. Depending on how much you’re borrowing, this down payment might be a large sum of money. In most cases, small business owners won’t be able to have enough to cover this type of down payment. To skip this hassle, partner with a direct lender that offers invoice factoring.
In closing, it’s important to understand how an invoice factoring service can help your small business. If all invoices were paid on time, experts estimate that small businesses throughout the United States could collectively hire almost 2.1 million new employees. However, small business owners understand that many invoices won’t be paid on time. To obtain cash for your small business, you’ll need to find a factoring service. In turn, this type of service will be able to take your invoices and turn them into funding your small business needs.
