In a perfect world, funds would be available the moment you needed them for your business. Whenever you were a little tight because of a down season, or even just needed a boost in the right direction for a start-up, loans would be approved and capital would appear. It would erase a lot of stress that comes from an old but important question: What do we do as a business when the money we need is tied up elsewhere?
Well, this is definitely not a perfect world, but at least there’s factoring. Factoring can improve the quality of your world and dealings in business, however, giving you the capital you need without all the hassle. We can think of three great reasons why factoring is a major plus for your business:
1. Less Focus on Mistakes, More on Clientele
There aren’t many people these days who have spotless credit. With the economy slowly crawling back from ruin, some mistakes are bound to be made (or have been made). It’s nerve-wrecking to get stuck in a financial situation because of one of these errors. Even as a hard worker, your chances of getting the money you need can suffer when scrutiny is on your spending habits and where that money is going.
With factoring, that scrutiny is placed on whether or not your clients will be likely to pay. Credit checks are not included for you, the business, as it’s not your reputation in question.
2. Quick Results
Waiting, especially in a financial situation, can be the death of a business. Suppliers are not nearly as friendly when you have neglected to pay your invoices, and employees are even less forgiving. It’s a shame to have to lose valuable people over money that could’ve been in their hands on time. Factoring takes days, not weeks or months, to go through the approval process. There is a lot less red tape, so you get your money when you need it (and before the strike signs go up).
3. No Limits
How much money is required to properly run your business? Every industry and even every business is different and require different financial needs to be met. With factoring, you’re allowed to sell as much as you can reasonably offer in terms of your accounts receivables. As long as you have hard working, reputable clients, factoring is a great way to gain access to working capital. It’s all up to you; you get to call the shots on what you need and what you can part with.
Factoring has made a major comeback with the many ugly faces of loans and downtimes in business. It has opened up doors for new businesses with the clientele (but not the reputation to grow), with old businesses with regular slow seasons, and with businesses that just need a boost in the right direction. It’s a new age of money, and in this age we’re able to make bigger decisions that keep our businesses alive.
Catamount has always been there for us and has been very instrumental in helping us succeed.
Without Catamount we would not be where we are today...period. They have been a tremendous help and are very supportive!
When we needed help Catamount stood up to the plate for us. Their service is outstanding...great people to work with!