What's the difference between a regular line of credit and Accutrac's Factoring Line of Credit?
It's easier, simpler and less hassle for a business to qualify for a Factoring Line of Credit than for a traditional line of credit from a bank. The two main differences between a traditional line of credit and Accutrac's unique Factoring Line of Credit are the qualification criteria and how they're secured.
- A different approach to qualifying: When a bank considers you for a traditional line of credit, they take into account your business's financial history, credit rating, assets on hand and liabilities, in other words, they look at your creditworthiness. For a Factoring Line of Credit, qualifying is based on the creditworthiness of your customers.
- A different approach to how the line of credit is secured: Most often, a business will need to secure a traditional line of credit with an asset within their business, like a piece of property or a personal asset, like the owner's home. With a Factoring Line of Credit from Accutrac, the line of credit is secured against your accounts receivable invoices.