There was a time when bank loans were considered the easiest, least expensive source of business capital. However, it is difficult to qualify for bank loans, or too small of a credit line is offered. Plus the financing is often secured by entrepreneurs’ personal assets. In contrast to bank financing, non-bank financing such as receivable financing immediately increases cash flow without creating debt on the balance sheet. This type of non-bank financing is more flexible and the main qualifying factor is the creditworthiness of its customers, not the credit of the entrepreneur.
In many ways, non-recourse accounts receivable financing is considered more beneficial as compared to bank loans:
• Non-Recourse – Credit protection is offered
• Perfect for start-ups
• Fast funding for Local, State and Federal Government contracts
• Solution for funding with IRS issues
• Direct funding source for over 20 years
• Great for the non-bankable and under-banked