There was a time when many consider bank loans as the easiest, least expensive source of business capital. However, it is difficult to qualify for bank loans, or the offer is too small of a credit line. 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, many consider non-recourse accounts receivable financing as a more beneficial option when comparing 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