Your customer wants to pay in 60 days, but your best-price vendor wants his money upfront...and your employees have to be paid too. It's no wonder that most businesses, at some time or another, wrestle with managing their cash flow. A business line of credit is a common solution to even out that cash flow rollercoaster.
What can a business do when it can't get a traditional line of credit approved or extended?
A Factoring Line of Credit is an alternative financing option that's unique to Accutrac Capital Solutions. Businesses in Canada and the US will often qualify for a Factoring Line of Credit even though they don't qualify for a traditional line of credit.
Qualifying for a Factoring Line of Credit is simple...because it's based on the creditworthiness of your customers...not your personal credit or the financial strength of your business.
A Factoring Line of Credit is an alternative financing product that offers the best of both worlds...
You have access to ready cash to grow your business...when you need it. A Factoring Line of Credit also takes away the hassle and headache by performing credit checks and managing all your receivables and collections for you.
How a Factoring Line of Credit Works:
- A factoring company manages all your company's invoices and receivables.
- You maintain a line of credit equal to 90% of your receivables and draw upon it as needed.
- You only pay factoring fees for funds drawn.
How is a Factoring Line of Credit from Accutrac different from a traditional line of credit?
- Your Factoring Line of Credit grows with your business because it's based on your outstanding invoices from creditworthy customers.
- There are no regular payments, because your customers pay invoices directly to the factoring company.
- The service includes professional management of accounts receivable and collections. That translates to reduced headaches and administrative costs.
Busting the myths about factoring
Businesses that use a Factoring Line of Credit aren't only those businesses experiencing financial setbacks. There are many reasons why a business will be turned down by the bank for a traditional business line of credit...but still qualify for a Factoring Line of Credit from Accutrac. Some of these include:
- high growth businesses that are flourishing today, but don't have long term revenue history to qualify for traditional financing
- startup businesses with no financial base
- high-tech companies without a traditional Ôbricks and mortar' operation
- businesses operating in high risk sectors