Factoring: the business loan for entrepreneurs
Financing is and remains difficult for entrepreneurs. Getting a business loan is the biggest problem for entrepreneurs at banks. Banks must become more resilient and apply very strict conditions and regulations. They are not very willing and not very flexible to offer companies a loan.
Research shows that many entrepreneurs have difficulty obtaining a business loan. For them, the money tap generally remains closed. While 24% of entrepreneurs indicate that they still need external or pre-financing. Fortunately, there are more and more alternative forms of financing that can meet the financing needs such as factoring. Factoring is a popular and fast-growing form of business lending where the invoice is the underlying collateral for the loan.
Traditional vs. alternative forms of financing
With external financing, traditional forms of financing such as bank loans and leasing are still common. However, more and more companies are calling on an alternative (non-bank) form of financing. Examples of this are crowdfunding, peer-to-peer lending and factoring. The greatest advantages of alternative forms are the often lower threshold value to meet the requirements of the financier and the speed of action.
The benefits of factoring
When you opt for factoring as the business loan for entrepreneurs, you opt for the following benefits:
- Money is available very quickly: within 24 hours after invoicing you already have the money at your disposal or you will receive a facility based on your debtor portfolio.
- Higher financing than bank possible, without a restrictive ceiling.
- Financing through factoring is flexible and follows any revenue fluctuations (useful if you have seasonal sales).
- You have more liquidity at your disposal for realizing, for example, growth or additional purchasing discounts.
- The costs of factoring are often lower than a bank loan.
Request a free quote without obligation
Are you curious about the possibilities of factoring as a business loan for entrepreneurs in your specific situation? Request more offers without obligation. Based on the company profile you specified, we ensure that you receive multiple offers within one working day. High quality quotes from qualified factoring companies under the best conditions.