In the world of finance it is hard to know whom you can trust. When you need fast business loans, the last thing you want is to end up with the payday lenders of the business world. How can you get the funding you need quickly without ending up with a lender that only cares about making a quick buck?

First you need to make sure that you are looking for the right kind of financing. Certain types of financing tend to attract unscrupulous and predatory lenders. 

The Worst Kind of Business Loans

The worst loans of the bunch are unsecured business loans. These are the equivalent of payday loans for businesses. 

1. They’re expensive

Unsecured business loans are typically extremely expensive, either in rates or fees. The true cost may very well be hidden in the fine print. The actual interest rate may be low, but they more than make up for it in recurring charges and a long list of transaction and management fees. 

This isn’t a personal loan and consumer protection laws don’t apply. Businesses offering these types of loans are not required to disclose the true APR. It is on your shoulders to read the fine print and calculate the true cost of the loan.

2. They’re restrictive

Many also require your customers to pay by credit card. If your business doesn’t accept credit cards or if only a small portion pay by credit card then you will only be approved for a very small limit, if you get approved at all.

Factoring is Financing That Makes Sense

A better option is to work with a factoring company. Factoring companies provide financing quickly and do so in a way that is helpful, not harmful to your business.

Unlike a traditional business loan from a bank, factoring is quick and easy with minimal documentation. Some factors, such as Fast A/R Funding, offer short-term agreements, which gives you flexibility in the way that you finance your business.

1. You are fully in control

With factoring, the funds you receive are based on the invoices you submit. You submit all of your invoices or just a select few. This means that you are fully in control of the amount of funds you receive. 

The fee charged by the factor is tied directly to the invoices you submit. That means you only have to pay for the funding that you need. Again, you are fully in control.

You get all of the benefits of fast business loans without any of the negatives.

What’s so Great About Online Factoring? 

Something unique about Fast A/R Funding is our online factoring process. This sets us apart from any other factor out there.

• An online application completed in minutes

• All agreements can be reviewed and signed electronically

• Eliminate the time and expense of mailing out physical invoices 

• The system is available 24/7 – factor invoices any time of the day on any day of the year

• Monitor the status of factored invoices from anywhere in the world where you have an internet connection

• Receive funding by wire transfer – in many cases the same day that the invoices are submitted

This streamlined process allows us to offer very competitive rates with no hidden fees.

When you are up against the wall and need a fast business loan, make sure the type of financing you choose is beneficial to your business and make sure you work with a finance company that is more interested in you than in your money. 

Learn more about factoring and Fast A/R Funding’s services by downloading our informative “Factoring 101” guide, or call 888.833.2286 to speak with one of our small business finance consultants.