Applying for a business loan? Most business owners in need of money instinctively turn to one of two options – either a business loan or a business line of credit. Even small children know about business loans and lines of credit, but what many adults don’t know is that qualifying for them is no small feat. Let’s face it, qualifying for these options is virtually impossible in many cases.

One alternative you might want to try in many, but not all cases is invoice factoring. Before anything else, though, you’ll want to be absolutely sure this is the right path to take by asking the following questions:

Are you affected by the slow payments of your clients? That is, would they take up to 60 days (or even more) to make payment?
Are you turning away bigger sales because you lack working capital?
How good is the growth potential of your business provided you have the right financing in place?

If the answer to questions one and two was “yes” and you believe your business can grow with enough capital, then invoice financing it is – you might as well take a flyer on this alternative option. Invoice factoring provides you with financing based on your invoices, eliminating slow payment cycles and providing you with money to pay rent, meet payroll and expand your business.

Factoring, again, is a tailor-fit, customized option based on your potential sales, so it is not backloaded with arbitrary use limits present in business loans. As your business thrives, you can potentially qualify for more financing. Effortlessly. This is a product and a service in one that solves the problem of realizing a business’ special potential to thrive and make money.

There isn’t much to the process of factoring, which is sometimes known as accounts receivable factoring. You would first invoice your customers, and once you have, send a confirmation copy of the invoice to the factoring company. The factoring company would give you an advance of up to 90% of the invoices and as they wait for your client to pay, they will hold the extra 10% in reserve. Once your client pays the invoice, the transaction is settled.

In effect, by financing your invoices you eliminate the slow payment problem. With cash flowing in much faster, you can settle your payables, engage in new sales opportunities and watch your company grow.

Cost-wise, factoring is very inexpensive. Factoring fees range from 1.5% to 3% per month, making it an affordable product. If you own a business that is growing and you need financing, be sure to consider invoice factoring.

Find the most extensive collection of office chairs available including heavy duty chairs and other office seating.