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
You might find yourself wondering about the origins of online... Read More
When trying to locate bad credit loans, many people find... Read More
A secured loan is any loan that is secured on... Read More
Sometimes finding fast homeowner loans can seem impossible? no matter... Read More
Many people are confused by the different types of loans... Read More
What is a Secured Loan?A secured loan is any loan... Read More
You need to be wary of guaranteeing a loan. What... Read More
Here are 8 things to consider, when evaluating lenders online:Website... Read More
A bridging loan has many benefits, some of which are... Read More
Free Auto Loan TipsThe following tips should help increase your... Read More
Online lenders might be high quality, serious companies such as... Read More
The latest IDS figures for unemployment the claimant count measure... Read More
If you're looking for a UK secured homeowner loan, you... Read More
If you have poor credit or a recent bankruptcy, you... Read More
Online car loans enable you to get a good quote... Read More
If you have bad credit, have an emergency and need... Read More
In order to understand qualifications for loan approval, let's examine... Read More
Financing the purchase of a used vehicle can be done... Read More
A commercial business loan is designed for a wide range... Read More
As the term implies, Personal loans are simply loans for... Read More
There are lots of ways to get additional capital to... Read More
Why do kids get all the breaks? Winter-weary adults, fed... Read More
Worried about how to apply for a business loan? Although... Read More
Here are some useful tips on Personal loans. You can... Read More
You want to buy a home but you do not... Read More
The day you stop learning is the day when you... Read More
A cash advance loan is a short-term loan secured by... Read More
Here is a useful guide to Home Improvement Loans. What... Read More
Looking for a cheap personal loan can sometimes be a... Read More
Ever wondered what is credit? Credit is more than just... Read More
If you're saddled with debt or find yourself in an... Read More
Plato said, 'We can easily forgive a child who is... Read More
Here is a useful guide to personal secured loans. A... Read More
Worried about how to apply for a business loan? Although... Read More
Borrowing money has become more and more popular in the... Read More
An unsecured loan is a personal loan where the lender... Read More
Homeowner loans UK are a very versatile type of personal... Read More
Daughter's marriage or her studies? Son's Ambition? Want a House... Read More
Here is a useful guide to fast secured loans. Here... Read More
What will it take for you to get a low... Read More
Factoring has been practiced for centuries. The Romans sold promissory... Read More
Did you know that if you have a home that... Read More
Before entering college, you may find yourself pondering exactly how... Read More
Every unknown road needs a milestone to configure where it... Read More
If your home business is starting to overflow from the... Read More
The dynamics of loans borrowing procedure has brought new ways... Read More
Secured loans have become very popular over recent years, with... Read More
Government loans are those that the government of a country... Read More
FHA loan programs:FHA AccessFHA Cal GoldFHA Rural GoldFHA Mutal Mtg.... Read More
Regardless of your trading style; day trading, swing trading, or... Read More
If you thought your home is worth nothing except for... Read More
Your son or daughter is a high school senior and... Read More
With a stated objective to help consumers, Congress deemed it... Read More
When searching for a payday loan company online to get... Read More
A second mortgage is a loan that is secured by... Read More
A secured loan is a personal loan which is generally... Read More
Outlined below are some of the reasons for choosing a... Read More
A student loan is an unsecured loan made by lenders... Read More
A Brief Look At Loans "Innovative financial packaging" is how... Read More
Trying to find a good homeowner loan UK can end... Read More
Often in our search for finance options, we are led... Read More
Here is a useful guide to the bad credit personal... Read More
When you set out to borrow, you often come across... Read More
1. Property information. The application begins with a section on... Read More
A loan is the reason many students are able to... Read More
Applying for a payday loan online is a quick and... Read More
Loan |