Understanding Invoice Financing

Looking for Business Loans with Bad Credit?  Camel Financial Offers A Better Alternative

Small businesses can easily get trapped in a “Catch 22” of financing:  they need money to grow their business and create sustainable revenue, but they lack the financial footing to receive the necessary loans.  Most small businesses have bad credit – or no credit – by default, and that can leave them with very few good options for financial growth.

Bad credit small business loans do exist, but they usually come with a lot of strings attached.  The interest rates are often punishingly high, and a lot of collateral is usually required as well – usually the physical assets of the business itself!

That means just one or two bad months, or a single emergency/disaster can be the downfall of the entire business.

However, there’s another alternative for people seeking bad credit business loans:  Invoice financing.

Invoice Financing Is the Superior Alternative to Bad Credit Business Loans

Invoice financing also called refactoring, is a way to receive money rapidly when you need it, even if your small business has bad credit or no credit.  The way it works is simple: you sell your unpaid invoices to an invoice financial service company, who pays you around 80-90% of the face value of the invoice.

That’s it.  There’s no more waiting around for weeks or months for customers to pay, and no risk of having your assets seized due to missed loan payments.

With invoice refactoring:

  • You don’t need good credit.  Your credit score/history will only be a very small part of determining eligibility.
  • You don’t need collateral.  Those invoices are a hard-financial asset, so there’s no need for other insurance.
  • You get your money quickly.  After the initial startup process is completed, you can receive payment for your invoices within 24 hours in most cases.
  • You have no hard credit limit.  The amount of money you can receive is entirely determined by your invoices.
  • You can use the service as much as you need.  Many companies simply refactor all of their invoices, because the small percentage lost is justified by the fast pay-out.


If your small business is facing financial issues or credit struggles, Camel Financial wants to help!  Contact us to apply or learn more.