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Looking for small business loans that could help save your business? There’s more than one kind of “save” you might need. Salvaging a faltering business may be what comes to mind. However, if your business is too far gone, there are no small business loans that can help. And no lender will want to help you.

Small business loans shouldn’t be the last-ditch attempt of the desperate. Used wisely, borrowing is a strategic money management tool. It gives your business a lift when you need it. Without dipping into your cash reserves. It gets you over humps – and pulls you out of slumps. It lets you answer “yes” when opportunity knocks.

In a recent blog I noted, “Getting the right small business loan with an alternative lender not only provides needed capital – it can also help repair your business credit.” Accounts receivable (A/R) factoring is a prime example.


Technically, there are two versions of this type of financing. Suppose you have one or several high-dollar invoices you know will be paid by a certain date. You can get a cash advance on the money now, and repay when you are paid. With the most common Accounts Receivable Loans, though, you simply sell your receivables to a third party. And get your money now instead of waiting.

The lender is called a “factor.” They will discount your receivables by a certain amount (factor), and the difference becomes their fee.


In a nutshell, by providing working capital to operate. You might look to accounts receivable loans because:

  • You need money now, and you don’t have enough on hand
  • A chart of your monthly cash flow looks like the Rocky Mountains
  • You have less-than-stellar (or just plain bad) credit

Susan Payton is a business marketer. She gives this example: “Say you’re strapped for cash. You don’t exactly need a small business loan, nor do you have the time to go through the application process. Although you are expecting several invoices to be paid by large clients in the upcoming weeks or months, you need money now to pay your employees and vendors. What’s the solution? Accounts receivable financing or factoring might be an option for you — depending on your industry and the nature of your business.”

Whatever your reason for choosing A/R factoring, the savings can mount up.


Your business will falter if you don’t get your cash flow under control. Seasonality and other less predictable cash flow fluctuations are quite normal. But you don’t have to be ruled by that. Small business owners are spunky. And this is one place where you need to take charge.

Use accounts receivable factoring to shorten your business cycle. That’s the time between when you do the work or sell the product and when you receive payment. Shorter turnaround smooths cash flow. That makes it easier to pay your bills on time. In turn, that protects (or improves) your business credit rating. With better credit, you can negotiate better prices and up-front discounts. Multiple ways to save!


Factoring can give your business the stable financial foundation it needs to grow. It’s a proven strategy to manage the money flowing in and out of your small business. Even if you have bad credit, you can qualify.


Few things worry small business owners more than money. Knowing you have the working capital you need to move forward smoothly brings peace of mind. You can focus on more productive things. Be proactive instead of reactive. Plan confidently instead of hesitantly.


Time is money, you know. Once you’ve sold your receivables, you don’t have to spend time on collections. You – or your staff – are free to work on more positive tasks.

Obtaining accounts receivable financing is fast and easy. Here at United Capital Source, we have a short online application. You can be approved within 24 hours and have your money in as little as 72 hours. Better yet, we don’t just plug you into some funding formula. We always take the time to learn about your specific business challenges and goals. That we can match you with the best-fitting program, no matter what kind of small business loans you need.


There’s no reason for a personal guarantee with accounts receivable factoring. And no need for collateral, because the lender collects directly from your customers.

The cost of A/R factoring is higher than a bank loan. But that’s like comparing apples and oranges. Your business may not even qualify for a bank loan. And the amount you need probably doesn’t meet bank criteria, either. Alternative small business loans serve an entirely different purpose.

Some business owners fear their reputation will suffer when the lender contacts customers for payment. You can easily turn this potential lemon into lemonade. Simply tell your customers what to expect. Explain you’re being more efficient so you can expand your business to serve them better! There’s no “stigma” attached to superior customer experience.

Cash flow problems are a significant cause of small business failures. An article in the New York Times notes that the nature of business is cyclical. And bad things will happen at some point – “the loss of an important customer or critical employee, the arrival of a new competitor, the filing of a lawsuit. These things can all stress the finances of a company. If that company is already out of cash (and borrowing potential), it may not be able to recover.” Therefore, every business needs a cash cushion.

Ultimately, achieving smoother cash flow gives you that cushion. You can plan more effectively. You can make better short-term decisions. And make more strategic long-term decisions that keep your business growing. Accounts receivable factoring can help you worry less, and smile more. Your entrepreneurial dreams are coming true.

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