Many small business owners get started with the help of a credit card. It’s fast, easy, and fairly foolproof. In fact, many small business owners keep that credit card even after the business is open and established, using credit to finance daily operations.

But, of course, credit cards come with some downsides. First of all, it’s easy to let them get out of control and find yourself under a mountain of debt. Secondly, the interest rate on them is usually astronomical, which means you’re paying far more per purchase than you should be.

So what should you do instead of credit cards? We suggest factoring, and we’ve got three reasons you may want to consider it.

#1: It’s Getting Easier

In the past, many people have avoided factoring because it was a slow and awkward process involving tons of paperwork. However, it’s getting easier, especially as factoring companies like us implement new methods and improved technology. These days, a difficult process isn’t really a reason to say no to factoring — so it may be time to consider whether it’s the answer for your financing concerns.

#2: Avoid the Debt Mountain

The last thing any business owner wants is to get buried under debt. But with credit cards, that is exactly what will probably happen. If your credit score is adversely impacted by the amount of debt you accrue, then you will have a hard time meeting the needs of your business, which will result in your company suffering and potentially closing down.

#3: Cover Payroll

Even if you have more room on your credit card, you can’t cover payroll that way. However, with factoring, you can get the cash you need to pay your employees on time, which keeps everybody happy.

Need More Information? Contact Corporate Billing!

We are always ready to start a conversation about how we can help your company improve its cash flow through factoring. Contact us today to learn more!