Not every business has the best credit ratings. New and small businesses often have bad credit ratings which fall below the requirements of the funding options available to other companies. In the case of small businesses, credit rates are often low due to existing liabilities such as small business loans. For new businesses, the history of financials and sales may not be established enough to qualify for the loans they need to reach their essential milestones. Having low credit ratings often leaves business owners at a loss for funding solutions, except for sipping into personal finances or bringing on friends and family members as partners. However, bad credit is not a dead end. There is a way to fund your business without further damaging your credit or going into debt at exorbitant rates.
Why Go into Debt?
Most businesses try to avoid debt wherever possible. If anything, repaying the balance on a loan can eat into revenue. The payments on a loan must be made regardless of the sales made, which can deplete capital reserves for new and small businesses, especially during a period of low transactions. Fortunately, there are solutions available which provide an improved cash flow while also allowing business owners to rebuild impacted or bad credit.
Bad Credit? No Problem!
The one tried and true method used by businesses to build up cash reserves and repair bad credit is accounts receivable financing. Accounts receivable financing is not dependent on business credit ratings or existing debt. Accounts receivable financing allows businesses to leverage open invoices for immediate cash. Instead of waiting up to 90 days for customers to make payments on invoices, accounts receivable financing delivers within 24 hours. Because there is no impact on your credit ratings, your business can amass capital without debt, so you can focus on running your business and building your credit.
Accounts Receivable Financing is not a Loan
Accounts receivable financing does not place any debt on the books. The reason is that the funding method is considered a simple transaction. Unpaid invoices are “sold” for immediate capital. Instead of running the risk of finances going into the red due to staggered payment schedules, business owners can get immediate capital at the rate of their sales.
FSW Funding specializes in accounts receivable financing solutions for businesses. Whether you have excellent, impacted, or bad credit, why take a risk with debt-based loans when you can get the capital you need as invoices are generated? Contact our offices today to get started.