Pros and Cons of Using AR Financing
Instant Funds to Improve Cash Flow – Access in 1 business day to funding to cover gaps in cash flow. This allows you to stop worrying about your cash balance and refocus on growing your business.
Fast and Easy Approval – Factoring companies don’t take long to approve a business (usually less than 5 days for Harper Partners, and 2 days for our smaller credit lines), and unlike banks, they don’t ask for collateral to be posted. They require limited paperwork and are not as concerned as other lenders about your creditworthiness or operating history. They only care about the verification of the invoices and the creditworthiness of your customers.
Hidden Fees – Some factoring companies have hidden fees, charges and penalties, which you should watch out for. At Harper, we’re completely transparent about fees. You’ll come to find that not only do we give you all information upfront so that you can make an educated decision, we have very competitive rates.
Loss of Control – Since the factoring company collects invoices from customers directly, you may lose some control over your communications with them. At Harper, we never contact your customer unless you would like us to. Invoice payments are sent to an account under your business name. However, if you ever need a helping hand, we have collection services that can reach out to customers and collect on your behalf.
We are a California alternative lender that specializes in invoice factoring for modern B2B companies all over the U.S. We offer a fast, simple and transparent online solution to steady cash flow. We can set up credit lines in 2 business days and wire funds same day once set up. Our credit lines extend up to $5 million so we can grow with your business at every stage.
Give us a call at (323) 285-1462 or send us a message in the chatbox below to learn more about how we can help your business.
If you’d like to read more about what we offer, check out the benefits of partnering with us, our Small Business Factoring Resource and our definitive Invoice Factoring 101 Guide.