How is accounts receivable funding from Accutrac different than accounts receivable financing from a bank?
Accounts receivable factoring from Accutrac has three main differences from obtaining accounts receivable financing through a bank.
- Qualification is based on your customer's creditworthiness: One of the main differences between factoring and applying for bank financing is how the financial institution determines your creditworthiness. Banks will focus on your company's financial history and cash flow to determine if you qualify for financing. When qualifying for factoring, the decision is based on how creditworthy your customers are. That's especially helpful for a business that's already stretched its available credit, or to a newer business that has yet to build its credit history.
- Funding decisions are made quickly: Accutrac makes funding decisions quickly. Loans are approved within days of receiving an application whereas banks can take weeks or months to approve a loan.
- No monthly payments: Most business financing requires regularly scheduled payments stretched over a specified period of time (for example: monthly). With factoring, you receive an advance up to 95% of the invoice amount within 24 hours of submitting your invoice to the factoring company. Our factoring fees are deducted from the advance making the cost of factoring simple, easy to manage and affordable.