For small businesses looking to grow and expand, finding ways to pay for that growth can be a challenge. Traditional loans are always an option, but they’re not always ideal. It puts your business in debt and can end up causing more harm than good. Factoring or accounts receivable financing is a great alternative to traditional loans. Here are a few reasons to consider financing your business through factoring.

1. It’s Easy To Qualify For

When you apply for traditional business loans, you have to submit tons of paperwork showing the bank or lender that you’re worthy of the loan. This means you need to have a clear business plan, a good personal credit score, and a great business credit score. If you don’t, you put yourself at risk for overly high interest rates at best and disapproval at worst.

Factoring is incredibly easy to qualify for and you won’t have to worry about your credit score. The financing company looks at your business’s profits and the number of invoices you send out each month to determine if they want to work with you. If your business relies on invoices for payments, you’ll likely be able to qualify for this financing option.

2. You’ll Be Able To Offer More Flexibility to Clients

Factoring gives you immediate access to the money tied up in your invoices. This means you’re less reliant on receiving payments by the due date. When you have access to funds you’d otherwise not receive for several weeks, you’re better able to give clients more flexibility on their payment options.

If they need to pay a few days later than expected, it won’t hurt your ability to pay your bills. When you’re able to be more flexible, you’ll likely inspire more customer loyalty and gain a reputation for being an understanding and empathetic business owner.

3. You’ll Get the Money Quickly

Traditional business loans take weeks or even months to clear with your bank. This is especially hard when you need that money immediately to cover bills and pay your employees. With factoring, you get the money quickly.

Once you apply, the financing company will make a decision in a matter of days, and, if approved, you’ll gain access to the money tied up in your invoices in as little as 48 hours. Even better, there are no restrictions on how you can use the money you receive.

Accounts receivable financing is a great way to get money quickly. Once you apply and get approved, you’ll see these benefits immediately.