Buffet Factoring Blog

Factoring or Fintech

As a new or small established business, it is difficult to get a bank loan. When banks turn down companies there is still a choice Factoring or Fintech. These are two very different types of companies. Factoring buys invoices at a discount, and Fintech offers loans with high interest rates. Recently, many Fintechs have begun to offer factoring; unfortunately, it’s a watered down version and charges higher rates while providing poor customer service. Most Fintechs are new to the lending space and are mostly startups. Fintech has not been around as long as factoring. Factoring has been around since the early Romans and has an incredible success rate compared to Fintech.


Invoice Factoring or Bank Loans Lubbock, Texas

Whether you are starting out in business or a seasoned business veteran, eventually additional funding may be required for expansion, payroll, covering expenses or marketing services. Getting a business loan in Lubbock, Texas or anywhere these days is extremely difficult. Bank loans create debt and those debts affect cash flow. Getting a bank loan to cover short term expenses doesn’t make sense. Typically, if you’re lucky enough to get a small business loan, most banks will not give additional lines and more debt may hurt a company when trying to increase cash flow.