How Small Businesses Are Using Spot Factoring Instead of Traditional Factors
More and more small businesses are making use of mobile technology and solutions in order to stay relevant and connect with customers. Small businesses are also using spot factoring instead of traditional factors for greater success and profitability.
If you are in need of fast business funding, you might be wondering if using spot factoring instead of traditional factors is right for your business. By learning more about both, you can make an informed decision.
Comparison of Spot Factoring vs. Traditional Factors for Small Businesses
You might see flashy advertisements for traditional factors and believe they are the only game in town but it is important to know what’s available and get all the facts. By evaluating each option side by side, you can get a clear picture of your choices.
Traditional factoring agreements can take a long time to arrange.
With a spot factor, like Financing Solutions (www.fundmypayroll.com), you can apply in as little as 15 minutes and have the cash you need in your account in less than 48 hours.
Traditional factors insist that your clients make checks payable to them, not you. This means that everyone will know you are using a factor, which can be a clear signal that your business is experiencing a cash flow shortage.
At Financing Solutions, your arrangement is private. Checks are still written to you so there will be no need for your clients to worry or lose faith in your business. In the eyes of your clients, employees and other key stakeholders, it is business as usual. No one will know you are using a spot factor, except you.
Traditional factors have expensive fees, up to tens of thousands of dollars and lock you into a long-term repayment schedule that could take you years to pay off.
When you get quick business financing from Financing Solutions, it is actually quick. You can repay the money in a few weeks or months, as soon as your situation improves, with no early payment penalties. In addition, there are no hidden fees or confusing terms.
How Small Businesses Can Benefit from Thinking Big
In every business, there is room for growth and improvement. One way to do this is to see what you can learn from bigger companies in your industry or area and finding ideas you can use for your own business.
For example, if you know you have a great business model, you can look into franchising it. This is an ideal way to grow by letting other potential business owners help you expand.
You can also see if there are opportunities to partner with a similar business to form a symbiotic relationship. For instance, if your company manufactures lamps, you could partner with a company that makes light bulbs. This would be a win-win for you both.
Perhaps the best way to grow and improve your business is to contact Financing Solutions. They are a better option than traditional factoring for fast business financing.