Companies like The Receivables Exchange are trying to make factoring more competitive. The exchange allows companies to offer their receivables to multiple factoring companies at once, in addition to hedge funds, banks, and other finance companies. These lenders will bid on the invoices, which can be sold in as a package or individually.
2. Get a Bank Loan
Lending standards and criteria have gotten much stricter. However, banks like Bank of America and even your local credit union have set aside additional funds for small business lending. With that in mind, there’s really no reason you shouldn’t apply for a portion of these funds.
3. Use a Credit Card
Using a credit card to fund your business can be incredibly risky. If you fall behind on your payment, your credit score could plummet. However, if used responsibly, a credit card can get you out of a jam and even extend your accounts payable period to assist your cash flow. Many banks and lenders also offer business credit cards tailored to small businesses and their needs.
