You started a small business because you identified a need for a product/service in the market. Other than running the business and enjoying the profits, you are making an impact by creating jobs. You got all the right intentions but maybe for some reason you have a bad credit score and need some sort of business funding to grow. You wonder how to get a loan for your day-to-day business operations without having great credit history?
Traditional financial institutions have become more risk averse. They’re tightening lending standards due to previous economic crises, market volatility and an increase in financial fraud. Unless you have a great credit score, strong cash flow, been running your business for a while or have collateral, you more likely won’t get approved for a loan.
You can get funds for your working capital such as payday loans and cash advance financing. However, the interest charges are quite high on them which makes you rethink if getting funds instantly is even worth it.
But you do have another option, it’s called invoice factoring. It’s a type of cash flow financing solution where you sell receivables due within 90 days, at a discount to a third party, for immediate cash. At FundThrough, we created a seamless experience for your small businesses to get funded in as little as a day – without the hefty paperwork. Learn everything about invoice factoring in our Guide.
Factoring companies have different terms and offers. As far as the credit is concerned, we mostly care about the credibility of your customers and likeliness of your customers paying your invoices. Even if you have a poor credit for any reason and if your customers have been paying consistently, invoice factoring might just be the best solution for your funding.
FundThrough strives to assist small businesses succeed with a FinTech solution. We partner with several accounting software platforms to connect your unpaid invoices instantly, and pay for the ones you want.