In the New York Times today, there was another article on how many banks are curtailing loans to businesses. The article quotes Federal Reserve data that commercial and industrial loans from banks and short term commercial paper dropped almost 3% over the last year. The Times article says the housing and mortgage losses that banks are experiencing is affecting other areas of the business world. Profitable businesses with solid credit are even having a difficult time getting loans, or if they do the rates are high and the wait times are longer.

If your business has been turned down for a loan from a bank or you would like to consider alternative financing methods, factoring your accounts receivable is often a viable option. When factoring, a business sells their accounts receivable to a factoring company for cash. The credit worthiness of a business or the principals of the business are not important to a factor, what is important the credit worthiness of your suppliers and how likely they are to pay their bills.

To get a free factoring quote, visit our website, or call our toll-free number 866-950-MONY (6669).

Labels: alternative to bank loan, factoring your accounts receivable