Can Your Company Qualify For Small Business Factoring?

You are busy managing a business, not playing store. But for some reason if you walk to the bank and try to qualify for a business cash advance they insist on treating you like a child. Not only do you need to hand over a truck load of financial documents; tax returns, credit ratings, business plans and more, your chances of actually receiving the money are thin. On top of that, they want you to illustrate to them exactly how you will spend the cash and then they dictate stringent terms for paying it back.

Do you want to know how troublesome the condition is? Financial coaches suggest that you need to ask for at least 30% more financing than your establishment needs and a remittance period of at least 25% longer than you want. That increases your chances of actually receiving as much cash as you require, and hopefully allows you to pay it back even if you are having a negative month.

You have different avenues. Of course you can head to family and friends to see if they happen to possess a stash they are glad to lend you, but let’s get real: no one has that kind of cash right now. You can rack up debt on your credit cards, paying 25% interest on the cash advance, or you can talk to a small business factoring agent, who will know how well you are moving along in your new venture and is eager to enter a factoring contract with you.

If you haven’t heard about small business factoring or a factoring agreement, you aren’t alone. The way such an arrangement is set up is that your business will effectively sell a portion of your estimated credit card transactions from the near future to the factoring company at a discount. They give you cash right now in exchange. Within the next few months, you will repay the advance by giving them a fixed percentage of your credit card income each week. Nothing is smoother, and it is quick too, with an average turnaround of 7-10 days. Now that is a merchant advance you can afford.

I strongly urge you to start reading up on the program. There are several things you should look out for. For instance, will your industry type be qualified? What are the fees, if any associated with the program? What will it cost? What financial paperwork will you need? Many of these answers can be seen on my blog, www.blog.merchantcashfinder.com. Please visit when your establishment wants information on getting money.