factoring even if you have bad credit

Starting a business takes a big investment upfront, but not every business owner has that luxury. More typically, a company’s financial status goes up and down. Those down cycles, when expenses exceed revenue and bills are hard to pay, can leave a company with a bad credit history.

Does your low credit score or past bankruptcy mean you can’t be successful in the future? Absolutely not, thanks to your ability to get ahead on your bills by factoring your invoices. You may not qualify for a bank loan (Read more about “AR financing vs. Bank Loans“), but not to worry:

  • Your ability to qualify for factoring is based on your customers’ creditworthiness not your credit store
  • The application and approval process for factoring can be completed in a matter of days, whereas the process can take weeks or even months when you are seeking a bank loan
  • Because factoring advances are not loans, you incur no debt that can hurt your credit score.
  • Factoring actually can help your credit score because it allows you to pay your bills on time or even early.

Whether you have not been in business long enough to have a strong credit history or your company has faced business challenges in the past, factoring is an excellent option for you.

Many businesses decide to partner with a factoring company because it gives them a simple way to get access to cash quickly. This money can be used to improve your cash flow or for a variety of investments such as hiring more employees, buying new equipment, expanding your facilities, or purchasing raw materials and supplies.

When you factor your invoices, you will finally have instant access to the cash that you need to grow your business instead of waiting 30, 60 or 90 days for your customers to pay you. Interstate Capital has helped many businesses with less-than-perfect credit histories by giving them the jumpstart they need to succeed.  Get an instant factoring rate quote today.