Growing too fast

Is getting a bank loan a better idea? Many business decision makers don’t even look into factoring invoices as an alternative because they found a bank that will offer a loan. The problem lies in the size of the loan. If the loan amount is not enough to cover a surge of new business it could have a detrimental effect on continuing operations. When a company reaches the maximum limit of the loan they usually have very few options to raise additional capital. Invoice financing is a good choice for a young company that is growing faster than their balance sheet. The bank will look at what your company has done yesterday. A factoring company is interested in what you will be doing tomorrow.