When it comes to running a business, there’s always an ebb and flow with cash coming in and your expenditures. Not every type of business has the benefit of charging upfront for their goods or services. For example, a construction company isn’t going to ask for all the labor and material costs before a job’s finished; they’re going to perform the work, then bill their client later.
So, what do you do while waiting for that money to come rolling in? You still need to keep the lights on in your facility, pay for staff and expend resources to go about your daily activities. Keeping up with all these things can be difficult, especially if you’re waiting on accounts to be settled.
However, there is an easy answer: factoring loans and accounts receivable financing solutions.
Factoring & Accounts Receivable Financing Solutions
You may have already taken out a loan from the bank or another party to start your business, so you likely don’t want to keep on racking up debt unless it’s absolutely necessary. For this reason, many businesses choose to work with factoring loan companies, like Camel Financial, to offset costs and still have ample cash available to take care of day-to-day necessities.
What Exactly is Factoring?
Factoring is when you work with a third-party business to receive the cash you need quickly without having to be responsible for paying those who’ve loaned it to you back. Instead, you turn over your accounts-receivable invoices to that third-party business as assurance. After doing so the funds you need will be given to you and your factoring loan company will be responsible for collecting from your customers when the time comes.
What are the Benefits of Factoring vs. Traditional Loans?
One of the foremost benefits of choosing accounts receivable funding solutions like factoring over traditional loan methods is because your company won’t need to undergo a credit check. Instead, the factoring company you work with will check the companies who are supposed to be paying you, further reducing the burden on your firm.
Let Camel Financial solve your payroll problems!
Having trouble keeping up with payroll or other daily necessities? Our team can help get you the fast cash you need to keep your business growing. Camel Financial’s accounts receivable loans are designed to provide an affordable and efficient solution for your money troubles. Perhaps you need some additional front-end capital to begin a big new project or want to move your financing services away from a traditional bank setting. We can accommodate you.
To learn more, apply online now or call Camel Financial today at (949) 722-7717.