Differences Between Factoring Lines of Credit and Bank Loans
A traditional bank loan is quite restrictive in the amount of money a business can receive. Along with high administrative fees, a business will also have to pay interest on the loan for several years. With a factoring line of credit, no interest rates apply, and there is usually just a small administrative fee. It is the best solution for businesses looking for working capital who are unable to wait for or obtain approval for a bank loan. Additionally, factoring in lines also reduces administrative costs for businesses.
Why Choose a Factoring Line of Credit:
A factoring line of credit has many benefits for businesses, including:
Quick access to capital based on the strength of customers and not the credit history of a business
Funds are available when needed with low administrative fees
Management of accounts and collection of money from a business’s customers
Businesses can obtain funding on multiple invoices and therefore aren’t restricted on the number of funds they can receive
Businesses receive constant support from the factoring company
Learn more about a factoring line of credit by contacting us for a factoring rate quote.