4 Points to take about Factoring Companies UK
Most businesses that prefer traditional banks to Factoring companies UK have some good and justifiable reasons. To start with, factoring companies have been hiking their interest rates at alarming rates, and only the big businesses that can comfortably take their deals without feeling hurt. But behind these high interest rates however, there are also great points that any business manager should have at the tips of their finger points. Read below to learn more.
They offer the Opportunity to grow fast
They may have high interest rates as we already stated, they may taint your business reputation with some customers, but factoring companies UK can surely take your business to the next level. You doubt me? Just take a moment and think of all the things you could do in your business if you had enough money whenever you needed it. Then breathe in relief knowing that that’s what factoring companies are made for. They offer businesses quick cash whenever they need it, as long as there is an invoice to act as collateral.
They care less about your credit score
Is it true factoring companies disregard credit scores? Well, yes and no. In most cases, these companies only care more about the credit worthiness of your customers, the stability of your business and the willingness to work with them for a longer period of time. With this in in mind, having a good credit rating is only an added advantage, but not something that may greatly affect your chance of getting the cash.
They charge highly
Quite frankly, there is no hope in seeing factoring companies UK lower their fees any time soon. Business is good to them, and as more business realizes the importance of such services, the factoring companies will continue to reap big. Don’t get worried though, as you will only have to pay 15% interest rates for only a short span of time, and then you will have qualified to get higher amount of money at relatively lower charges. In fact, the ability to qualify for higher loans sooner than you would have with traditional banks makes factoring companies a far better option to business people.
Frauds exist among them
It is not all safe and good when it comes to working with factoring companies UK. Some of them are straight fraudsters, while others are there to rip off unsuspecting customers by slapping them with heavy fines and penalties on every delay in delivering payments.