Factoring Companies vs. Traditional Bank Loans
Is Invoice Factoring a type of loan?
No. Even though accounts receivable factoring is commonly referred to as “
factoring loans”, it is a financial transaction between the business seeking funds and the factoring company, but no bank. Accounts Receivable Factoring (Invoice Factoring) is when a company, like Charter Capital, purchases your accounts receivable invoices at a discount and provides you with immediate cash.
Charter Capital has built its reputation on funding small businesses when traditional lenders cannot. Factoring is the preferred no-loan alternative to commercial bank financing and an immediate way to raise cash for any business purpose. With the use of Accounts Receivable Factoring, your sales (accounts receivable or open invoices) are "cash in the bank." Funding is immediate and unlimited, mainly driven by your customers' demand for your goods of services.
Here's how accounts receivable factoring differs from traditional bank loans:
Businesses Funded
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Factoring |
Bank |
| Fast Growth |
YES |
NO |
| Start-ups |
YES |
NO |
| Profitable with no capital |
YES |
NO |
| Financial losses |
YES |
NO |
| Seasonal |
YES |
NO |
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Program Features |
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| Unlimited A/R Funding |
YES |
NO |
| No financial covenants |
YES |
NO |
| Advances up to 98% |
YES |
NO |
| Free credit checks |
YES |
NO |
| A/R management |
YES |
NO |
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Approval Process |
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| Financial statements needed |
NO |
YES |
| Dependent on personal credit |
NO |
YES |
| Must provide 3 years tax records |
NO |
YES |
| Lengthy approval process |
NO |
YES |
| Denied for IRS Problems - Tax liens |
NO |
YES |
Apply Today!
Accounts Receivable Factoring is a
no-loan alternative to business financing
As an alternative source of business financing,
invoice factoring eliminates many of the difficult-to-meet criteria
of a traditional bank loan. If you can get a loan or line of
credit in today's tight banking market, what are you going to do after you've spent those funds? You are still going to be waiting for the invoices to be paid. The biggest problem with
a traditional bank loan is that there is a maximum credit limit. Whereas
Charter Capital provides no-loan cash based on the quality and liquidity of your assets
(your accounts receivable). Because each account is
evaluated individually, Charter Capital has much more
flexibility than a Bank when it comes to keeping up with an
increase in sales.
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Charter Capital services many industries. Here are just a few of the industries
for which we are currently providing no-loan business financing:
Trucking and Freight
It has never been easier for trucking companies and freight brokers to get
business financing
with freight factoring from Charter Capital. We purchase your Freight Invoices
and fund you within 24 hours, so you don't have to wait to get paid.
Staffing Firms
We can help you grow your staffing company with unlimited payroll financing ,
whether you're a start up or a multi-million dollar
temp-staffing agency. Our
clients provide staffing for various industries including Professional, Office
Services, Medical, and Manufacturing.
Security Firms
Demand for security services in the USA is on the rise. Be financially prepared
to gain your share with a accounts receivable factoring financing from Charter Capital.
Manufacturing
If your business is a manufacturing plant, distributor, packaging company, or
any business that invoices to credit worthy customers, then Accounts Receivable
Factoring from
Charter Capital can accommodate the business financing needs of both new
manufacturing companies as well as those that have been around for years.
Service Firms
Service providers such as technology
outsourcing firms and business consulting firms are great candidates for our
no-loan Accounts Receivable Factoring service, enabling you to increase your cash flow without the need
for bank loans. We are always adding new industries and will consider factoring
service providers in any industry.
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