Can You Qualify for Long-Term Business Financing?

Long-term financing right now is a challenge for many people, but there’s some good news out there. We’re seeing a lot of inquiries where people have taken out two or three different online loans. They’ve stacked them so to speak, but they have great receivables and they still are getting good orders. Those are the types of clients where we can get them into a factoring facility, and they can very easily pay off that debt that’s a millstone around their neck. Stacked loans carrying high interest rates will hurt your cash flow. We’ve seen clients with that before, and we’ve been able to set them up with a better financing facility. Here is how to qualify for long-term business financing.

Short-Term Financing and Business Credit

We took somebody on that had five stacked MCAs and a tax lien. The repayments on that alone was suffocating him, so coming to us helped him get rid of that repayment obligation. If you are saddled with these loans you’re going to want to keep out of a default, but ultimately it’s going to affect your business credit. If you do slow down on paying your vendors because now you’re paying all these loans just to keep them current, you’re going to find your credit is being impacted. This will effect your ability to qualify for long term business financing. So, there’s a double-edged sword to this. You want to look at alternatives. It’s okay to pay them off. That’s a good thing, but if you’re finding that you just can’t make ends meet and it’s really expensive, look at alternatives. Factoring is a great option.

Financing for Struggling Businesses

If you have great commercial receivables, we can help you, Invoice factoring is going to be an answer for you. One of the most important aspects of factoring is knowing that even if you’ve hit a bump in the road, we’re not going to turn you down. Just because you’re now making losses or your revenue has dropped, if you’re still trading and you have business to business receivables on open terms, we can help you. You can leverage money out of your open A/R or accounts receivable.

Long Term Business Financing No Personal Credit

Your personal credit is not an issue to us. So, if that’s taken a hit at the moment, don’t worry. We don’t even look at it most of the time. It’s not important. We want to look at who your customers are and what your product or service is. That’s the key to this, and looking at your customers’ credit is going to be very important. It’s really how we will approve your financing facility with us, but we also have access to so many different reference agencies and information out there. That’s what we do all day long, so we can get notifications from people like DnB or Experian. So your customer credit is important, but again don’t worry if you’re finding your customers are stretching out their payments. That’s okay. We expect that at the moment, and it doesn’t mean that we will turn you away.

Protect Your Business from Customer Non-Payment

We want to understand what you’re doing to try and turn things around in your business, and using us to check customer credit is really important.  You don’t want to be taking on new customers that don’t have the ability to pay you. We’re experts at monitoring credit. We’ve done this for many years. That’s the whole crux of our business. We monitor business performance because that’s how we lend to our clients. So, we’re very on top of monitoring any trends that might be going downwards by getting information from credit reference agencies or sharing information with other factoring companies. So, we should have a lot of early warning signs that there could be a problem.

customer nonpayment

Collections Process During a Recession

We’re proactive about managing on the collection side. Whereas you might not necessarily realize that you’re now 30 days beyond terms with a client, we will. We’ll let you know if a customer is paying late, and we want to make sure you get paid. If there’s a shortage of cash with your client, you know you’re fairly high up that list for getting paid because of the relationships we have established with your customers. Factoring not only gives you the cash you need to help weather this storm and grow your business, but you can look at it as an outsourcing of your receivables management as well.

Customer Relationship Management

We’re going to look at your invoices, make sure that you have terms on there, make sure you’ve addressed it to the correct customer or correct entity, and we’re going to take over managing that relationship if you want us to. There’s a number of ways we can do this, but a lot of people don’t want to be saddled with following up on those customers. They don’t want to be that person that has to chase for the debt. Instead, they want to get a new sale. So, you can use us to politely and professionally follow up on that receivable.

  • Is it in the system?
  • Is it approved for payment?

All of the invoice chasing comes to us to carry out, freeing you, the business owner, to talk to your customer to get more sales. Don’t forget that kind of service doesn’t come with an MCA loan or a bank line. With Eagle, you’re going to get an account manager who’s there for you to bounce questions off of and understand how everything works.

Back Office Support

We’re human beings, so it’s not just a system that is deciding approvals or requests for more funding. Factoring can be a great option to help your business qualify for long-term business financing. You do have an online portal that’s available 24/7 to go upload your invoices, look at your payments, see the state of your receivables. All of that’s there, but we want to speak to you as well. We want to understand what your new challenges are. Let us know how we can help you and really develop that relationship. Invoice factoring is so much more than just money. It is a relationship where we can connect you with other lenders if necessary. If you’re looking for equipment finance or something else that you need, talk to us and we have usually a great solution available to you.

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