A Step Beyond the Small Business Line of Credit

A closer look at the traditional small business line of credit and its 2.0.

The definition of a line of credit for small business is changing

The best small business line of credit is designed for all the stages of the small business lifecycle.

The small business line of credit market has long been monopolized by banks offering a single, rigid product that has often been inaccessible to first-time entrepreneurs without assets, revenue, or an established operating history. Clearly, this is not enough. What is the new business owner with unpaid invoices and stalled cash flow to do?

Small business line of credit 2.0

Invoice factoring is the new business line of credit

Invoice factoring can be thought of as a short-term business line of credit. Unlike the small business line of credit that you might encounter at a bank, invoice factoring provides business owners with access to working capital by leveraging the credit strength of their customers.

What is invoice factoring?

Invoice factoring is a cash management solution that gives small business owners access to capital up-front by allowing them to sell their accounts receivable (i.e., invoices).

How does invoice factoring work at FundThrough?

FundThrough takes the process of invoice factoring and makes it more accessible. In addition to letting users factor their invoices online, at their own convenience, FundThrough gives small businesses the freedom to choose which invoices they want to fund, the ability to repay early whenever they want (at no additional cost and by waiving any remaining fees), and immediate access to 100% of their invoice value as a line of credit once invoices are approved.

Invoice factoring at FundThrough acts as a small business line of credit

The capital provided through invoice factoring at FundThrough serves as a better line of credit for small business because there is an added level of flexibility that was created specifically to address the short-term cash flow gaps faced by new and growing businesses.
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