When it comes to financing your business, there are many options available. Startups or small businesses may shy away from loans to avoid debt; but what about a line of credit? And how does this funding option compare with factoring? JOBE Services, Inc. shares more information about factoring vs. a line of credit to help you make the best decisions for your Texas business.
Factoring is a financing option where a business sells its accounts receivable (invoices) to a third-party company, known as a factor. The factor provides immediate cash to the business in exchange for a fee. The factor then collects payment from the customer directly.
Factoring can be a great option for businesses that need immediate cash flow. It can also be a good option for businesses that have slow-paying customers or that are unable to qualify for traditional financing due to poor or non-existent credit.
A line of credit is a financing option where a lender provides a business with access to a predetermined amount of funds. The business can use the funds as needed and only pays interest on the amount used. Once the funds are repaid, the business can use them again.
A line of credit can be a great option for businesses with seasonal cash flow or that need funds for unexpected expenses. It can also be a good option for businesses with a good credit history and can qualify for competitive interest rates.
JOBE Services, Inc. provides reliable factoring to help small and medium-sized businesses with cash flow problems. Let’s compare factoring and a line of credit to see which would best suit you.
JOBE Services, Inc. has helped Houston-area businesses with their cash flow problems since 1996. We are a trusted name in factoring financial services because we help businesses help themselves. Factoring lets you avoid debt and we do not lock you into long contracts or charge hidden fees. Contact us today to learn more about factoring to improve your company’s cash flow needs.
