Factoring Working as a Small Business Line of Credit for Your Company
Managing cash flow is usually cited as the number 1 challenge for small businesses, especially in B2B industries where longer invoice terms up to 90 days are quite common. A small business line of credit is the logical solution, but it is not always easy to get approved or to get the amount that you require. Working Capital of America offers an alternative – invoice factoring also known as accounts receivable funding. Get cash when you need it to cover expenses, take up larger orders and grow.
How Does It Work?
Selling accounts receivable to obtain short term funds is called factoring. This is a well-established business practice which is often a preferred alternative to a small business line of credit because it works simply and effectively, while being much easier to access.
You decide which of your invoices to sell to us at any given time. Upon purchasing them, we will transfer a fraction of their face value up to 95% to your bank account on the same day. A WCA, our team is known for outstanding accounts receivable management. The customers that you’ve billed will be in good hands and the payment terms and conditions for them will remain unchanged.
You will receive the remainder of the invoice face value minus our service fee when your clients make payment. Our great rates, expertise and outstanding customer service attract small businesses of all industries from manufacturing to trucking.
Advantages Over Traditional Credit Lines
Because of the unique nature of AR financing, your customers’ ability to pay is more important than your credit history. Our factoring solutions are designed to work even for small businesses with bad credit or without credit history. Your financials aren’t a primary factor in your application either. You don’t have to worry about placing collateral of a specific size.
With our cash advances, you will be able to do all the things that you would with an unsecured business line of credit – cover payroll and operating expenses, repay any existing debt more effectively and even save money by paying suppliers more quickly. When an opportunity for a big order shows up, you won’t have to miss it because of insufficient working capital, but use our purchase order factoring solution instead. We’ll purchase your invoice and help you out fast.
The fact that your business is small should not stop you from thinking big. You can use the cash you obtain via our unique business line of credit to invest in expanding your operations. You can put more money in marketing, more advanced equipment, renting a larger premises or staff training. The possibilities are endless.
It Takes a Single Step
Apply now for our invoice factoring solution or get in touch with us to discuss your situation and get more information and obtain a no-obligation quote. We process applications within 48 to 72 hours to ensure that you will be able to get your cash advance as soon as possible. At Working Capital of America, our team is always happy to help companies in any B2B industry reach their full potential with a small business line of credit.