If you’re a small business, chances are you need the services of third-party financing companies known as Factoring companies. They offer capital to businesses that need it in exchange for their unpaid invoices.
This benefits business owners who require a positive cash flow while they wait for their customers to pay up. This list of the best factoring companies for small business will help you decide on the one to work with.
1. Blue Vine
This online factoring company offers a paper-free solution and is transparent with their terms. They offer a fast and convenient way of receiving funds to support an irregular flow of cash for small businesses. It is possible for a small business to get an advance on the very day an invoice payable in 90 days is issued.
They offer between 85 to 95 percent of an invoice value within a 24-hour period. All it takes is to open a free account and choose the invoices you want to be paid. They charge a one percent fee on your credit line which ranges between $20,000 to $2.5 million after the invoice is fully paid.
This factoring company advances between 80 to 85 percent of an organization’s credit line. Dealstruck manages the bank account where payments go into from where the line of credit is balanced out. However, the bank account is maintained in the name of your business.
They do not assign the factored invoice to themselves and underwrite a borrower’s credit line based on performance and total receivables. The financing offered by Dealstruck is between $50,000 to $250,000. The rates offered by Dealstruck to their qualified borrowers is low.
Small business owners are in control of their cash flow if they deal with Fundbox. Opening an account with them is free and easy since there is no need for forms to be filled out for approval. It is easy to use based on its ability to integrate with all invoicing platforms.
Simply click to clear an unpaid invoice for an automatic transfer to be made to your bank account. As a result, it shortens the time it takes to convert an invoice to cash. Fundbox funds the full amount of an invoice and not a percentage. It allows for payments of the principal, advance fee, and transaction fee to be made in 12 equal installments. If a small business no longer needs the funds, all it takes is to fund the balance without any costs.
There are lots of factoring companies for small businesses to choose from. The most crucial thing is to choose one with the most favorable rates.