Financing Receivables to Overcome Bank Turn-Downs

Being turned down for a small business loan can feel like you are losing access to the resources you need, but the fact is there are a number of other ways to receive funding. When bank turn-downs have you wondering how to get the funding your company needs to keep growing, consider alternative forms of financing like factoring.

Low Risk Financing

Factoring is also called accounts receivable financing, and it works by basing your cash advance on the outstanding money owed to your business through your accounts. The reason they are ideal for businesses who have faced turn-downs from a bank is because they are based in your customers’ payment histories, and the lender will assume the duty of collecting those payments.

Benefits of Financing Receivables

There are a number of key benefits that make this ideal for businesses that have had trouble accessing other forms of credit:

  • Payment insurance on your customers at no additional cost to you
  • No loss of equity or additional long-term debt
  • Make cash flow more predictable
  • Access funds as needed to buy supplies

Managing your cash flow is the key to keeping your business operating smoothly, and that consistent operation is possible when you have a lending partner who has designed a system to work with customers like you. Lucida Funding Corp associates are ready to help you start an application today.