Companies looking for a fast form of small business financing have few options other than taking out an ACH loan. An ACH gives the small business owner the option to receive same day funding with minimal paper work—all you’ll need is a copy of your business license, copy of your driver’s license, bank statements from the last 3-6 months, and a voided check. There are a couple of big caveats, though, as ACH loans firstly require the debtor to pay daily interest on their loan. Secondly, because of a significant factor rate, the loan will cost the debtor thousands.
Instead of daily high interest payments, the Bridge Advance gives companies a less costly option for their cashflow crunch. A Bridge Advance is essentially an ACH loan without the pitfalls, giving small business owners all of the benefits of taking out an ACH loan, but with a weekly payment schedule and much lower rates. Furthermore, as seen in the comparison above, a Bridge Advance gives the business owner a term flexibility of 30, 60, or 90-days.
Through use of a Bridge Advance, companies can acquire needed working capital to buy inventory, pay rent, provide timely wages, or just have spare capital on hand; in turn, the small business will increase sales potential. As your company grows, it will progress toward a better option of small business financing — invoice factoring. Invoice factoring gives you timely cash advances on your accounts receivables, with even lower rates than a bridge advance, as well as reliable cash flow to fund and expand operations.
The Bridge Advance is unique to Transfac Capital, and it is aimed to help small businesses grow and flourish. Here at Transfac Capital we take pride in being an industry leader for over 75 years, with low costs and complete transparency. For more information about how a Bridge Advance could help your business expand, or questions pertaining to invoice factoring, give us a call at 1-888-222-2840.