Factoring vs Bank Loans

Banks hesitate to offer factoring services because it poses more risk than claiming hard assets against a loan. Recent regulations have also made requirements for bank factoring stricter.  

Corporations that are financially strong enough to obtain a bank loan often find themselves needing additional funding as their business grows. However, banks have little leverage to meet the additional borrowing needs of those companies. In addition, the process of collateralizing invoices, known as factoring, requires credit analysss, technology updates, and maintenance that depend on extra energy and costs.

Banks Refer Customers to Factoring Companies

Because of these risks and regulations, organizations that inquire about bank factoring are often referred to factoring companies like Factor Finders. Banks ultimately want to enjoy a long-term business relationship with their customers so they refer companies that they cannot finance to factoring firms like Factor Finders.

For example, Factor Finders often gets customer referrals from local banks that want their customers to receive the financial help that they are unable to provide. Banks know Factor Finders will serve their customers well by providing an speedy factoring application process and cash advance rates up to 90%.

Moreover, banks make their loan decisions on the basis of their customers’ financial histories and credit scores. Alternatively, Factor Finders approves agencies on the basis of their customers’ credit strength. The simple factoring application process offers the ultimate flexibility in record-keeping, documentation, and credit score analysis.

Factor Finders buys your eligible invoices at a discount and advances you cash in 3 to 5 business days. When your customers pay Factor Finders, we release the balance on your account minus a factoring discount. It’s important to note that firms can continually sell their eligible invoices to spur business growth.

Factor Finders Negotiates with Banks

Factor Finders works diligently with banking customers to offer premium solutions. For customers with existing bank credit lines, Factor Finders will buy their invoices and leverage a buyout with their bank. We can also work with the bank to agree on a subordination of the accounts receivable.

Factor Finders offers financial solutions than can yield unlimited growth for agencies. We also offer:

• Export receivable finance
• Purchase order finance
• Letters of credit
• Credit analysis
• Credit protection
• Collections services
• Accounts receivable management

Request a quote today!

Call 1-855-322-8671 to learn more about our services.