What about Bankloans ?
Why is invoice finance a better option than using loans, overdrafts and credit cards?
There are many advantages to using invoice finance over the more traditional facilities offered by commercial banking institutions
- Bank loans, overdraft and credit cards often have lengthy and complex application processes, which are time consuming, and often frustrating and you are still not guaranteed that your application for credit will be accepted. Factoring is a fast and simple facility to arrange
- With a bank loan you would need to have established a good credit rating, this is not always the case with invoice finance. If you are a start up company or have not generated as much profit it may not affect your chances of invoice finance.
- A bank can force you to pay your overdraft back taking it away at a moment’s notice if they feel you have failed to comply with the conditions of the overdraft.
- Our invoice finance partners will not charge your business high interest rates or make you pay for funds you have not yet used as you would with a commercial bank loan.
- Banks may ask you to offer assets as security for your loan, which you could lose if you are unable to make payments.
- There is no set limit to the amount you receive with invoice finance, as there would be with a loan or credit card, banks will only offer your business a certain amount of credit based on the risk they feel your company poses.
- There is always a risk of credit card fraud if your details get into the wrong hands, this cannot happen with invoice financing.
These are just a few reasons why invoice finance can be a better way of accessing cash than credit cards, loans and overdrafts. Invoice finance gives you access to additional cash flow without increasing your company’s debt level and represents a very useful way of freeing up the money you need to start new projects.