Factoring is not a loan and is a debt-free funding option. A great way that businesses that factor their invoices describe factoring as is “an easy way to receive my money as soon as I’ve earned it.” Invoices are purchased from you by the factoring company, which means no money is being lent. No loans means there’s no debt.
Factoring is an affordable way to fund your company. In the long run, factoring can cost your business less than interest on a credit card would. Factoring is kind of like putting your house up for sale and getting 98 percent of your asking price in cash on the day you list it. While factoring is not a free service, the cost is minimal in comparison to what you might rack up in interest on a loan.
Factoring is a quick and easy process. While factoring doesn’t happen at lightning speed, it does happen to be pretty quick. The application process isn’t time consuming or grueling, and once you’re approved, invoices can be factored and money delivered in as little as 24 hours.
Factoring doesn’t require a long term contract. Although this process varies from company to company, at CoreFund we don’t lock you into any long term contracts. We also don’t require any volume minimums, which means you can choose which clients’ invoices you want to factor.
For more information on how factoring works or why CoreFund stands out from other factoring companies, check out some more of our posts or contact us today!
Post written by Senior Copywriter “Nikki Wakefield” of CoreFund Capital, LLC.