Invoice factoring is the act of selling future invoices to a third party to increase your business’ cash flow now. It may sound like a good idea, but there are many choices on the market. In order to know which invoice factoring company is right for you and your business, you need to have an idea of what they offer. Some areas to be considered are industries operated in, financial health of your business and ease of use, among others. This post will list some of the top invoice factoring companies so that you can make the best possible decision for your business.
Invoice Factoring Qualifications
If you are wondering “what does bankruptcy do?”, you need to learn about invoice factoring as a possible solution. Before you find the best invoice factoring company for you, it is important to be certain that your business meets required guidelines. First, your business must work with other businesses or government customers. Also, invoices cannot be pledged to other loans and must be due within 90 days. In addition, your business cannot have a history of tax or legal issues. You may even be required to have a minimum business credit score for particular companies. Make sure you meet these invoice factoring requirements before contacting any of the invoice factoring companies below.
Bluevine is one well-recognized invoice factoring company. If you need a company you can trust, this is it. Bluevine provides up to $250,000 and allows the invoices to be due up to 90 days out. If you need a larger amount of cash in advance, Bluevine is a good choice. However, if your credit score is not good, this may not be the best option for you. Bluevine requires a credit score of at least five hundred and thirty. It is also important to mention that approval takes at least one business day. If you need funds as soon as possible, this is probably not the choice for you.
Dealstruck is a good option if you are a small business owner in need of new machinery. Dealstruck provides you the opportunity to pay back the loan as opposed to selling your invoices outright. The company allows amounts up to $500,000. This is a great option if you are in need of larger sums of money. However, you must have a personal credit score of at least 600. Your business must also at least be breaking even. Owners of struggling businesses need not apply. If your personal finances or those of your business are not in the best state, this is not a good option for you.
Fundbox is a great route to take if you value ease of use. Fundbox is compatible with all invoice accounting software. This makes acquiring funds as simple as one click of the mouse. They also have a great advantage over the competition by funding the whole invoice amount, not just a percentage. This can be especially helpful. However, if you need the money available immediately, this is not a great option to consider. While most businesses receive the money by the next business day, it can take up to three. You may not want to take the risk if you are in need of money now.
Deciding which invoice factoring company is right for you may be difficult. These are three of the best companies to secure small cash loans for your business. However, you may decide that another factoring company is better for your needs. Make sure to compare pricing, requirements and industries served. You may find a company for invoice factoring specific to the industry your business operates in. Each business has its own specific needs, but if you choose one of these three, you will have a good chance at getting funded. Fundbox, Dealstruck and Bluevine are well known in the invoice factoring business for a reason. Consider these options closely before looking elsewhere. This will ensure you pick the best invoice factoring company for you and your business.
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Finding the right company to help you with invoice factoring is a vital step in getting the process started. Thank you for sharing these options!