Myths and misconceptions about the factoring industry cause small business owners to overlook the funding source and impact the growth of their companies, Charter Capital reps say.
HOUSTON, November 17, 2021 – Leading invoice funding company Charter Capital says small business owners often make funding decisions without fully understanding their options and alternatives. The company’s recent publication “10 Common Myths & Misconceptions About Invoice Factoring” digs into a handful of the myriad misunderstandings its representatives resolve on a daily basis. The full article is available to read at charcap.com now.
Joel Rosenthal, co-founder and Executive Manager at Charter Capital, says factoring is only utilized by a small percentage of the population, despite the fact that most businesses can benefit from it at one time or another. As bank approvals continue to dwindle and the funding gap grows, the number of businesses turning to less ideal solutions is expected to increase as well.
Rosenthal says it’s often little misunderstandings that do the most damage, such as when a business owner thinks he must factor all his invoices or will have hidden fees.
“When business owners find out these things aren’t true, they’re relieved they can get easy and affordable funding,” Rosenthal explains. “The problem is, they don’t always realize they’ve heard one of the common myths, and so they lock themselves into expensive long-term contracts that eat away at their growth potential.”
Rosenthal notes that concerns like cost and qualifications are common misconceptions about factoring as well. For example, people often think that because they have bad credit or have been turned down for a bank loan, their company can’t qualify for factoring, or they’ll pay high fees.
“Most B2B businesses qualify for invoice factoring,” Rosenthal contends. “And, when they partner with a company like Charter Capital that offers very competitive factoring rates, it’s an affordable funding solution, too.”
According to Rosenthal, businesses on the fence about invoice factoring should start with a no-obligation rate quote and learn about the process firsthand. Those interested in requesting a free rate quote or learning more can do so by calling 1-877-960-1818 or charcap.com.
About Charter Capital
Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-877-960-1818.