A Factoring Line of Credit: Not Your Traditional Line of Credit

A Factoring Line of Credit: Not Your Traditional Line of Credit

Accutrac Capital 0 Comments

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:

  1. A factoring company manages all your company's invoices and receivables.
  2. You maintain a line of credit equal to 90% of your receivables and draw upon it as needed.
  3. 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 __bricks and mortar' operation
  • businesses operating in high risk sectors

For more information about Accutrac Capital's Factoring Line of Credit and how it can help your Canadian or US business improve cash flow, visit https://www.accutraccapital.com


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