Got Bad Credit? Invoice Financing Can Save Your Company

Posted on Posted in Blog

Owning and running a business is difficult – particularly if you’re having cashflow problems.  You need money to keep the lights on, and if your customers aren’t paying their bills, your options start becoming limited.

Some businesses may be able to qualify for bank loans to cover the difference, but there are two big problems.  First, the interest on those loans can often make them worth less than they appear.  Also, if your business has bad credit, you might not qualify for loans at all.

Fortunately, there’s another option for businesses with bad credit – invoice financing. This alternative to bank loans is fast, easy, and doesn’t get you into debt.

Here’s how it works.

How Invoice Financing Can Provide Your Company with The Cash It Needs – No Credit Necessary!

The premise of invoice financing – also called invoice factoring, or accounts receivable financing – is that it views your outstanding invoices as an asset.  If you have customers who owe you money and aren’t paying, you can still collect on that money by selling those invoices to a factoring company!

You won’t quite get full price for the invoices, but you’ll usually get around 80-90% of their face value.  Then, the factoring company takes over responsibility for the invoices and their collection.

It really is that simple.

You can utilize invoice financing with bad credit because your credit simply isn’t involved.  All you need are legal unpaid invoices.  Likewise, there’s no “credit limit” when you’re using invoice factoring – the only limit is the amount of money that you’re owed by your customers.  Better yet, because the transaction is so simple, you can get your money fast.  Usually, all it takes is a day or two.

For many companies, invoice financing makes so much sense that they simply partner with a factoring company to handle overdue bills.  After all, engaging in collections requires time and money that you might not have.  By selling your unpaid invoices, you’re avoiding that added trouble and expense.   The amount you lose on the transaction upfront may even be balanced out by the amount you save by not doing collections yourself.

Let Camel Financial Help

In short, if you’re having trouble keeping the cash flowing in, and you’re concerned about the costs and trouble of getting a bank loan, invoice factoring may be exactly what you need.  Camel Financial has experience and has helped hundreds of companies just like yours.  Contact us to learn more.

Leave a Reply

Your email address will not be published. Required fields are marked *