Factoring vs. Bank Loans

Is factoring a type of loan?

No. Even though invoice factoring is commonly referred to as " factoring loans", it is a financial practice involving a B2B transaction, but no bank. To further explain, account factoring, it is when a company, like Peacock Capital, purchases your accounts receivable invoices at a discount and provides you with immediate cash. A traditional bank loan uses your company's accounts receivable as collateral, where account receivables factoring looks primarily at the financial soundness of your customers, not your company. Banks are regulated heavily; large finance companies generally are public and driven by pressures in the financial markets. When times are tough, banks and finance companies limit lending. A small business, too new to have a track record, with a weak balance sheet, with a history of financial problems, in turnaround mode or undergoing big changes, often cannot find a willing lender at any price. That is why factoring is best for small to mid-sized businesses.

Does a bank loan make more sense for my small business than invoice factoring?

No. Banks often have restrictive lending requirements relating to cash flow, profitability, equity, and years in business, which prohibit them from making loans to small to mid-sized businesses. Since factoring companies are not in the lending business and there is really no such thing as " factoring loans", the decision to purchase invoices is influenced primarily by the quality of your customer base and their financial stability, and not the financial fundamentals of your company.

Do I have to jump through the same hoops for account receivables Factoring as with bank financing?

No. All Peacock Capital needs to produce a proposal is a completed pre-approval form, summary of accounts receivable aging, summary accounts payable aging and some other basic financial information.

Do I have to be an established business operating a minimum number of years to start an account factoring relationship with Peacock Capital?

No. Peacock Capital prides itself on working with companies in all stages of business, including recently developed small to mid-size businesses. Even pure start-ups are usually not a problem for Peacock Capital. If your company has verifiable invoices and creditworthy customers, Peacock Capital will happily speak with you about an account receivables factoring relationship.

Are my receivables held as collateral while my company is factoring?

Yes. Peacock Capital requires a first position on all accounts receivable while you are factoring with us.

Does Peacock Capital require additional collateral when my company is factoring?

No. Within our traditional account factoring programs, a first position on accounts receivable is all that Peacock Capital requires while you are factoring. In some situations, Peacock Capital may take an available security interest in other company's assets.

Afra AmirSanjari is the Principal for Peacock Capital. Peacock Capital specializes in solving the cash flow challenges of Small/Medium Businesses, Government Vendors and Individuals with innovative financial solutions by providing a network for securing operating capital.

http://www.peacockcapital.com; info@peacockcapital.com

---

Benefits of a Secured Loan

The secured loan is favoured by many UK residents seeking... Read More

If You Consider To Get a Quick Cash Loan Then Reconsider It

A quick cash loan also called payday loan, cash advance... Read More

What is a Bridging Loan?

A bridging loan as the name implies is a loan... Read More

Unsecured Loans: The Lesser Known Sibling Of Secured Loans

What is man's greatest invention?Some of the latest gizmos would... Read More

What is a Personal Secured Loan?

A personal secured loan is the generic term for a... Read More

Do You Qualify for a Loan?

Like most people, you will probably wait until submitting a... Read More

If You?re Looking For Low Cost Car Finance, Loan Companies Offer Some Great Deals

These days having a reliable and safe vehicle to drive... Read More

No Credit? ? You Will Need a Bad Credit Loan

So you have never taken out a loan? You don't... Read More

Getting the Best Auto Loan Rates

Getting a good auto loan rate is not luck, but... Read More

Secured Loans ? Filling the Void Created by the Deficiency of Resources

"Money is like a sixth sense without which you cannot... Read More

Why Choose a Homeowner Loan?

Outlined below are some of the reasons for choosing a... Read More

Getting the Best Loans UK with Bad Credit

Sometimes it might seem as though finding good loans UK... Read More

Fast Cash Personal Loan - No Credit Check and Very Quick

You can get a payday advance with cheap rates and... Read More

Locating Cheap Personal Loans

Locating the cheap personal loans that you're looking for isn't... Read More

Secured Loans - UK Overview

Borrowing money has become more and more popular in the... Read More

Devising Newer Ways of Repayment

How good would it have been had there been no... Read More

What is a Home Improvement Loan?

A UK Home Improvement Loan Can Give You The Home... Read More

A Guide to Bad Credit Finance Options

Have you been trying to find out what bad credit... Read More

Short Term Loans...are they right for you?

With less than a week before she was to receive... Read More

Five Things To Check Out When You Apply For a Payday Loan

Are you thinking of going in for a payday loan... Read More

Should You Get A Pay Check Advance?

At some point in your working life, you may find... Read More

Secured Personal Loans - What You Need To Know About

Loans that are secured against property are called secured personal... Read More

Loan Options for College Students

You just finished high school and realize you have two... Read More

Where to Get Your Military Signature Loan

Military signature loans are easy to come by. When looking... Read More

Secured Loans House the Most Positivistic Consequences of Loan Borrowing

One of the most enduring myths of loan industry is... Read More

What You Should Know About Home Equity Loans

A home equity loan is essentially a type of second... Read More

What Are VA Loans?

VA loans are basically mortgages or home loans geared towards... Read More

Navigation After Financial Closure - Bankruptcy Personal Loans

Bankruptcy has a stigma attached to it that is hard... Read More

A Guide to Looking for Cheap Online Loans

Cheap online loans may seem hard to come by, but... Read More

Guide to Homeowner Loans

Here is a useful guide to Homeowner Loans. A Homeowner... Read More

PayDay & Cash Advance Loans Online ? How Do Online Payday Loans Work?

How online payday loans or cash advance loans work? Online... Read More

Getting That Car Loan: Simple Interest Is The Best

So here's the situation: you are buying a car but... Read More

Guide to Home Improvement Loans

Here is a useful guide to Home Improvement Loans. What... Read More