Natural disasters are unpredictable when you think that everything is running smoothly with your business. Many ventures end up with serious financial loss when trying to bounce back and recover from a natural disaster. The following are some of the top benefits that come from the use of invoice factoring when dealing with natural disaster recovery.
1.) Invoice Factoring Funds Are Fast
Most business loans out there can take several days and even weeks to approve the loans and this is definitely time that you don’t want to lose. When you use invoice factoring, your loan could be approved in as little as 24 hours.
2.) It’s An Affordable Financing Option
SBA, FEMA and bank loans can have very high rates and this is something that invoice factoring options have always managed to lower significantly for business owners looking for viable financing options.
3.) No Debt Is Added to Your Balance Sheet
When you use invoice factoring you won’t have to deal with added debt to your balance sheet as you would with a bank loan. Give the debt-free financing nature of selling your assets, you will be able to avoid having this added as debt.
4.) Credit Scores Don’t Matter
When you are dealing with any finance company, you are usually going to be eligible based on your credit score, but this is not the case with invoice factoring. Your eligibility is based entirely on your client base. This means you are leaning on the credit viability of your clients, not your own.
5.) Start-up Companies Qualify
As long as your customers or clients are considered creditworthy, your start-up status is not going to influence the invoice factoring company in their decision to give you financing. Start-ups qualify just as fast as any other business.
My Final Thoughts
With natural disasters being such a common occurrence that is of an unpredictable nature, it’s always good to know that you have the option of using factoring to deal with the issue. Natural disaster recovery can be much easier for you and your business if you consider using invoice factoring.
Caps Funding, LLC. Is familiar with many of the problems that business owners experience after a natural disaster. I created Caps Funding shortly after a hurricane ravaged our local area. If you own a business and are looking for a financing option after a natural disaster, give me, Charles, a telephone call at (803) 429-3686. Or, email me. We can discuss what financing options are available.