What is Account Receivable Factoring Verses Spot Funding?
Most business owners do not know what Account Receivable Factoring is or that Factoring is very expensive, however there is a new financing option available called spot funding that provides cash to small business that is easy to get, short term and inexpensive.
Are You At Risk of Missing Payroll or Worse Closing?
Many businesses can find themselves on the brink of closing because they can’t make payroll or pay an important expense, due to a temporary problem such as a late-paying customer or brief cash shortage. If you have ever lost sleep worrying about how you will make payroll or get through the month, you are not alone. Many businesses have struggled with these same dilemmas at one time or another.
Banks and Traditional Account Receivable Factors
Traditional banks tend to run in the other direction when you say you are in any type of trouble. That is where Account Receivable Factoring has come in play IN THE PAST. Account Receivable Factoring provides a way to receive long term financing but what happens when you really have a short term problem and you are tight on time.
Spot Funding is the New Financing Option for Fast, Short Term Cash
Spot Funding (or spot Factoring) is now the answer from Payroll Financing Solutions. Spot funding allows your business to get an immediate cash advance against your current receivables without being looked into a long term contract and because spot funding is short term, it isn’t that expensive. Also, there are no elaborate hoops to jump through or complicated paperwork and the turnaround time is fast, often in the same day.
Factoring has Been Around for a Long Time
The practice of Account Receivable Factoring has been around since biblical times, mainly because the process is very simple. You use your account receivables as an asset to demonstrate credit and a finance company can then provide you with a cash advance based on their value.
It typically involves an initial interview with the managing partner of Financing Solutions. Your eligibility is determined after a 15-20 minute interview and within 60 minutes, you will then receive an offer letter. After providing the appropriate documentation, such as identification, bank statements and come business records, you can have the necessary funds wired to you immediately.
You can choose amounts as small as $5,000 or as large as $100,000. The money can be repaid over time, right from your business accounts, in increments that are easier for you to manage.
Statistics show that more than half of the small businesses that start today will not survive past five years, and many may not even hit the two year mark. Often, they fail because they basically run out of cash. Don’t be one of those. When you are faced with missing payroll or other urgent business expense, let Account Receivable Factoring or spot funding turn things around.