Many things can cause a business to experience financial hardship, from a reduction in sales to emergency expenses that aren’t budgeted for. Fortunately, a company can get the money they need by borrowing against single invoices in their accounts receivables department. While there are many benefits to this type of financing for business organizations, the following are the most notable. Be sure to consider spot factoring to help a company get quick access to the cash needed to stay afloat.
No Accumulation Of Debt
A loan is a debt, meaning it is a lump sum of money that must be repaid by the borrower in one payment or over a set number payments. Borrowing against invoices will provide a company with cash without creating a debt or the need to pay high payments over an extended period of time. This can help prevent a company from accumulating a dangerous amount of debt and keep their finances in good standing.
Quick Approval Process
A commercial bank loan can take up to 90 days to process, which can be devastating for a company that needs fast access to money for unexpected expenses. An invoice loan can be approved in as little as 24 hours, and disbursement of the funds can be completed in just a few short hours through a wire transfer. Don’t deal with banks and obnoxious timeliness, when a company that utilizes spot factoring can approve an invoice loan quickly.
Low Fees And No Interest
A loan comes with a high-interest rate attached to it and can lead to hundreds or thousands of dollars being paid out over the life of the loan. An invoice loan does not accrue interest, and most companies pay out as much as 96 percent of the invoice amount. This makes it an affordable option that won’t lead to further financial devastation or wasted money in the form of interest payments.
Any business owners looking to get quick access to cash should consider an accounts receivable loan from Business Factors. They have a seamless application process and can have a loan approved in as little as 24 hours. Check out their site to learn more and save any company from financial devastation.