When a small business has been turned down for a business loan from their bank because of poor credit, a thin credit file, limited time in business or a few financial bumps in the past, finding funding may seem like an impossibility.
However, if your business completes B2B sales or work and you invoice companies with 30, 60 or 90-day terms, a small business factoring quote can provide you with an option for immediate funding with absolutely no strings attached.
Think of factoring as an advance on payments your customers are going to make on the accounts receivables generated. The factor will advance up to 80% or more of the total, withholding 20% until your customer completes payment. Then the factor deducts fees and wires the balance to your business account.
The Application
To obtain a small business factoring quote you will need to submit an application. Look for factoring services that do not charge an application fee and also do not charge any type of due diligence, minimum volume or termination fee.
The application for a quote should be easily completed online. You will need to provide information on the business, but there is no need for complicated forms or for the need for a credit check on your business.
Factors will require a minimum amount in accounts receivables to start the process. This is often a very modest amount, but you will need to know if you can select the accounts receivables (ARs) you want or if you have to provide all your ARs. Look for a factor without a minimum volume requirement and that does not require a long-term contract for their services.
Additionally, be sure to review all rates and fees. This will all be provided with the small business factoring quote. Top companies will provide the quote within one business day, typically within 24 hours, with funding available in your account in just days once you accept the quote.
