How does factoring work?
Is it necessary to put down a deposit?
What is factoring good for?
We know that you and your company do not need factoring,
but simply need money to develop your business.
Factoring is an easy way to get them quickly.
Factoring solves the main problem of cash shortage and deficiency in the working capital. If your customers are paying with deferred payments and banks are not giving a loan, then factoring is the best solution not only to patch up financial holes, but also use it to aggressively grow your business.
You need factoring for your company's independence from timely payment by your customers of their obligations to you; for incessant cash flow; for the absence of obligations to banks; for the rapid growth of your company. We can call you an infinite number of such positive "for".
Every company needs funds for operational management and rapid growth, but for one reason or another, your company does not have a business angel, a group of investors, and obtaining a bank loan is always very a long, nervous process with an uncertain result.
Offer your customers favorable payment terms, grow, get rid of inconvenient bank lending, endless cash shortages and dependency on your customers' payment rules.
This is a particularly viable option if your business is in the following situations.
- You have short term funding needs.
- You have an urgent need and cannot afford to wait weeks or months to get bank approval. And what's more, if a bank refuses a loan to you because there is no collateral or your business does not meet the criteria of the bank, then the corresponding refusal record will be visible inside the interbank customer scoring system.
- You cannot wait for your customers to pay you (in some cases, you may need to wait 30 to 180 days to receive a payment).
Factoring does not have to be a one-time financing option. You can build a relationship with VIMcredit that will last whenever your business needs it. Maintaining cash flow won't be a problem because you won't have to wait for bills to be paid.
