Is it necessary to put down a deposit?
How is financing done?
How is factoring better than a loan?
This is our favorite question! Get comfortable.
First, let's go through the categories Collateral, Conditions for obtaining, Funding limits.
Collateral
[+] FACTORING
Collateral is NOT required. The collateral is the receivable itself, no hard collateral is required.
[-] LOAN
Collateral is required. Banks require hard collateral or guarantees. It is difficult for small businesses to present sufficient collateral.
Conditions
[+] FACTORING
The solvency of your customers is assessed. Financing conditions depend on the quality of the debtor.
[-] LOAN
Your credit history, collateral and solvency are assessed. Thus the conditions depend on the past state of your firm, not on the future of the business.
Limitations
[+] FACTORING
No limits. Funding varies according to sales volume and your business perspective.
[-] LOAN
Fixed in the loan agreement. And limited by the size of the collateral. The loan limit never takes into account the prospect of developing your business.
Superficially looking at the comparison of a bank loan and factoring,
you can immediately see how much VIMcredit is cooler than any bank loan!
Let's continue about our advantages.
- Time! Unlike banks, you do not need to call us and arrange a personal meeting regarding the approval of your loan. Same day meeting at European banks is more of a dream than a reality. You do not need to wait for this meeting, increasing your expenses and cash gaps.
- Documentation. To approve a bank loan, at a personal meeting with a banker, you must specify a business plan or documentation for which project or transaction you need funds. We evaluate your customers, their solvency, so you do not have to prove your worth to us - you have already delivered the goods and fulfilled your obligations, that's enough for us!
- Again, time! After the bank receives all the information from you, there is a long process on the part of the bank to assess its risk, your credit and accounting history. Depending on the bank and the country in which the bank is located, the time for consideration of issuing a loan to you by the bank can be up to several weeks. Don't forget the endless breaks, team building, vacations, replacements, new bankers. In addition, we consider your transaction, your buyer, and not your accounting history.
- Guarantee of loan receiving. Even after meeting with bankers, passing them all the necessary documentation to assess the risk of issuing a loan to you, you have no guarantee of obtaining a loan. We also cannot guarantee you the successful issuance of funds, but we consider your application as soon as possible, without wasting your time, and we are constantly in touch with you, which eliminates the possibility of refusal just because you did not provide us with one document, and the document request from our risk department got lost somewhere between the departments, as is often the case in banks. In addition, all our employees are competent in matters of documentation, understanding the work of the business, risks and prospects, so they will be able to discuss your business in detail with you, immediately understand the necessary documentation and will not make unrealistic promises or ask the same questions in a circle. The result of the refusal to provide a bank loan is your lost time, most likely the lost agreement under which the loan was taken, the loss of confidence on the part of business partners.
