A Scottish company can be sure of achieving growth only when it has sufficient credit or capital investment. They can then secure capital in a number of ways. However, there is a limitation, in that for most businesses, securing capital can take a long time. This prompts businesses to seek credit or borrowed capital. Credit is available from a number of sources, with the banks being the first stop for many struggling businesses. However, banks won’t always be able to provide the required credit amount. They take a number of factors into account before deciding whether to approve the credit or loan application. This can be a long process, and is where Scottish factoring companies come into play.
Factoring occurs when a business sells to a factor, its receivables or financial assets, in exchange for cash either to provide their business with sustainability or growth. Working with one of numerous Scottish factoring companies can be highly beneficial for a business wishing to access cash for growth purposes. The key advantage to this kind of relationship is that, unlike a bank, Scottish factoring companies don’t take your company’s scale or credit worthiness into account. The transaction is a straightforward one whereby the accounts receivable are sold at a favourable rate, and the factoring company will provide access to cash.
The whole process is simple and offers a degree of freedom to a business, which makes it an attractive option. There are a number of Scottish factoring companies who are in a position to offer the capital required by all types of business. Factoring companies can make capital available to improve the business with new machinery, for example, or to help it expand with new premises. They can even offer bridge loans. Further, a business can use the money provided by Scottish factoring companies to repair credit when finances have fallen behind.