Factoring when you have bad creditToday’s business environment can be very challenging. With economic ups and downs and massive changes in how we do business, even strong, successful companies often have less than perfect credit scores. Any past payment missteps or business reversals can make it difficult, if not impossible, to qualify for bank loans and other forms of financing when you need it. Yet growing payroll costs, approaching tax deadlines, or overdue bills mean you need to seek financial assistance fast.

Fortunately, no matter what your credit report says, you still have an excellent alternative to traditional lending or expensive merchant cash advances: factoring. Invoice factoring companies, or companies that provide you payment upfront on your accounts receivable, help you improve your cash flow regardless of your credit history. In addition, factoring companies don’t evaluate your financial needs based on your assets or collateral.

Factoring Companies Keep Your Business Operating

Factoring companies step in to help you keep your business operating at full speed while your customers wait 30, 45, or even 60 days to pay for the work you have completed. You receive payment upfront from your factoring partner right away – almost as soon you can submit your invoices to your factoring company.

Many businesses rely on a factoring company to help close the gap between invoicing and receiving payments from clients. You, too, can have a positive cash flow, even if your business credit rating is not high. Factoring professionals are more interested in the creditworthiness of your clients than the credit rating of your business.

When you apply for factoring services, the factoring company conducts credit checks on your customers. If your customers pay in a timely manner, then you can factor their invoices. The factoring company will advance you a large portion of your invoices quickly, often within a day. The remaining amount, minus a small factoring fee, will be paid to you as soon as your client pays your invoice. 

The benefits of factoring your accounts receivable can be yours, regardless of a poor credit history. Besides receiving fast payments, you’ll be able to take on clients who take 30, 60, or 90 days to pay. You receive the cash you need – without borrowing and running up additional debt!

Interstate Capital was formed in 1993 in Santa Teresa, New Mexico and we have been servicing a wide variety of industries throughout Northern America for many years. Contact us for a free cash flow assessment today!