Knowing your choices is the first step in finding something better. For example, you may have been considering online factoring for your business without realizing that Financing Solutions is a better alternative.
As a small business owner, it is important to research your options for quick business financing, but you are probably too busy running your business to think about how to do it better. Therefore, you may feel that you have to settle for online factoring, but you don’t.
Why Online Factoring May Be Wrong for Your Business
Waiting for accounts receivables to come due and managing cash flow can be the most difficult aspects for any small business. As a result, many look to online factoring, getting cash against future receivables, for help. However, this option is not ideal for most companies.
For one thing, online factoring is not a good fit for some types of businesses, such as consumer-focused retail shops, that may not have a lot of unpaid invoices. It is also not good for weak businesses with low-profit margins. If the health of your business is poor, you will be more likely to use it in the wrong ways, sending your business deeper into a debt that you cannot climb out of.
In addition, finding the right online factoring company is difficult. They are not all the same and some have shady practices that could end up costing your business lots of money. For instance, they might charge fees for early repayment. Reading all the fine print takes time that you likely don’t have.
How Financing Solutions is Superior to Online Factoring
Many companies are looking for online factoring because they might want to factor one invoice or more. Financing Solutions (www.financingsolutionsnow.com) provides either a cash advance or line of credit that makes traditional factoring obsolete.
There is a key disadvantage in traditional factoring in that it takes a long time to get in place and it encourages a long cycle of debt. In addition, traditional factoring is much more expensive and your clients will get calls from your factoring company about where they should now send their checks, signifying that your business is in dire financial straits.
With Financing Solutions, your clients continue to pay you, so your cash flow issues are no one’s business but your own. Also, they offer a flexible, easy repayment schedule so you can repay the short term business funding in a few weeks or months, not years and there are no penalties for being early. In fact, many businesses turn to them again and again when faced with temporary cash shortages.
Good Alternative Paths for Growing your Business
When many people think of business growth, they only think about spending lots of money to get bigger. On the contrary, there are numerous ways to grow that you may not have considered.
One path to ponder is franchising. This represents a good way to open new locations without having to do all the work yourself. Additionally, you will be helping other entrepreneurs live their own dreams. Before choosing this option, make sure you have a solid business plan that can be adapted for others.
You can also tap into your current customers for referrals. Prospects are more likely to choose a company based on recommendations from others. You can reward your customers with special offers and thank-you incentives.
The best way to grow your business is to contact Financing Solutions. They are a good alternative to other fast business financing options.
