The advantages of invoice factoring vs. business loan

Learn how comparing invoice factoring vs. a business loan will set you on the right course for better financing decisions.

Because invoice factoring isn’t actually a loan, but rather an advance on invoice payments, it has considerable advantages for businesses when compared with other credit options. Here are four of those key advantages:


1. You receive the money quickly

Cash is usually received in a few days, which is weeks or even months faster than most traditional business loans. This is a huge advantage for any businesses that have cash flow issues.


2. New businesses and those with lower credit ratings can still qualify


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Didn’t get that bank loan? You may still qualify for invoice factoring.

Because the money you receive up-front is based on the creditworthiness of your customers rather than your business itself, many companies that might otherwise be turned down for traditional financing can still qualify. 


3. Applications are easy

Compared to other financing options, the paperwork required for invoice factoring is far less detailed or time-consuming. When applying for future funding and working with the same invoice factoring partner, the process can be even faster since you’ve gone through the initial qualification process already.


4. No interest payments, just reasonable fees

Interest on business loans can be a major ongoing expense, especially for new businesses or those with lower credit scores. With invoice factoring there is a one-off, reasonable fee, which is deducted from your final ‘reserve’ payment. 

No bills to pay, no debt, just increased cash flow. And you gain a valuable strategic partner with Blacksail Capital Partners.


If you need a hand comparing invoice factoring vs. a business loan, we are happy to help you evaluate. And if you’re already interested in accessing invoice factoring funding with Blacksail Capital Partners to access up to $10 million, contact us today.

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