When starting up a new business or expanding an existing one, there is a veritable laundry list of boxes to check, t’s to cross and i’s to dot. The vast majority of business owners are forced to take out loans or enroll into a financing plan that fits their needs. This process is rarely a stress-free one, to say the least.
A point of contention when reaching out for a loan on your new business is the dreaded personal credit score check. This is a major factor in whether a bank will grant your new business the loan you need or if you will have to look for alternative means of funding instead. Many burgeoning entrepreneurs find their dreams stifled by a previous personal credit mishap that can haunt them for years to come. What do you do in this surprisingly common situation?
Bad Personal Credit Score? Try This Alternative Funding Method
If your personal credit score is keeping you from funding your dream company, we suggest you take a look at Accounts Receivable (A/R) Financing, also known as factoring. With A/R financing, your company isn’t accruing any debt. How does it work? You sell your accounts receivable to the funding company (like AmeriFactors), and we provide you with an advance on the balances right away. This opens you up to purchases and opportunities that otherwise, you may not have had if you were to wait the regular 30-60 days for your clients to pay.
With accounts receivable financing, the entire A/R process is taken off of your shoulders and transferred to the funding company. Because the responsibility to pay lies with your customers, creditworthiness depends primarily on them, not on you. Not only that, but there is also a markedly improved turnaround time with A/R financing over traditional bank loans, as a large portion of the lengthy paperwork is minimized.
As proponents of small businesses and entrepreneurs, AmeriFactors is proud to offer A/R financing options to those in need of funding for their small businesses. If you are interested in seeing if you qualify, simply fill out an application today — you could be approved in as little as 24 hours. Contact us to see if accounts receivable financing is right for your business needs