Valentine’s Day may be past, but it’s still the perfect time to assess whether factoring is the best financing solution for your business—or whether you should try cash flow lending instead.
Could Cash Flow Lending Be the One?
You may think factoring is your perfect match, but is that just because it’s the only financing option you’ve ever tried? You might have settled too soon—and settled for less than your business deserves.
Here are some important questions you should ask yourself about factoring. The answers will help you decide if factoring is still meeting your needs—or if it’s time to “break up” with your factoring company and switch to cash flow lending.
Does it give 100 percent?
Factoring companies give your business cash advances based on the value of your unpaid invoices. However, they only give you a percentage of each invoice’s value. You have to wait for the invoice to be paid in order to get the full value of the invoice, which means not all of your money is available to you when you need it. Cash flow lending companies have no such limitation. For example, when you finance your invoices with Fundbox, you receive the full value of your invoice—100 percent.
Is it always there for you?
When you need money to cover your business expenses or pay your bills, you need it right away, not next week or next month. How fast can your factoring company provide a cash advance? If it’s not fast enough, then cash flow lending might be a better solution to your problems. When you use Fundbox for invoice financing, the money you need can be in your account as soon the next business day.
Does it cause problems in your customer relationships?
When you choose a factoring company to give you a cash advance, the factor takes over collecting your unpaid invoices. This can cause all kinds of misunderstandings and confusion. Customers may wonder why a strange company is calling and asking for money—they may think it’s some kind of scam. They might even think your business is in financial trouble. Who needs all that drama? Fundbox’s cash flow lending solution lets you handle your customer relationships and keep collecting on your invoices.
Is it always totally honest with you?
We all know how important honesty is in a relationship—including your relationship with your financing company. Unfortunately, some factoring companies are less than upfront about the real cost of their financing solutions. When it comes to cash flow lending, Fundbox doesn’t play games. No matter how little or how much you finance, all fees will be clearly stated upfront so you know exactly where you stand.
Does it make you jump through hoops?
We’ve all been in relationships where you feel you can never measure up to the other person’s expectations. Who wants to work that hard? With cash flow lending from Fundbox, the entire process, from application to funding, is super easy. Register for free, then click to connect your Fundbox account to your accounting Once you’re approved, you can begin selecting invoices to finance right away.
I’m not saying factoring is wrong for every small business—hey, we all have our own personal tastes. But if answering the above questions is making you think twice about your relationship with your factoring company, now might be the time to think about taking a break. Who knows? You might just fall in love with cash flow lending.