Everybody procrastinates. It’s part of human nature. We know something has to get done but some seemingly unknown energy keeps us from the task. But when you are applying for commercial financing this could create a problem. Securing financing for a company works better when all your options are optimal allowing you to make informed decisions.
Too often a factoring client will wait until the last minute to finally turn in their application leaving the factoring company little time to meet the client’s deadline. Had the application come through in the weeks or months earlier, nobody would have to rush to pull together the necessary documents to get to closing.
The critical part of this is; you may get turned down for factoring. There may be something structurally wrong with the deal, for example – the creditworthiness of the customer may be weak, or you might have an existing loan that needs to be paid off first. So if you wait until the last moment to apply for financing and then get turned down, it doesn’t leave you much of a window to consider other options.
Turn in your paperwork in a timely fashion and you’ll probably earn points for being pro-active.