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Invoice Funding vs. Advance Loans


February 5, 2021

Not knowing what you don’t know can put you out of business.

On average, we see one factoring client per day shut their doors due to the inability to service ACH bank withdrawals associated with Merchant Cash Advance and other Cash Invoice Advance Loans. If something seems too good to be true …

Cash Advance Loans

Cash Advance Loans most typically auto-debit your bank accounts daily, offering:

  • Speed
  • Utility
  • Convenience

But how much does “easy money” actually cost, and does it provide the cash availability you really need.

Invoice Factoring

Invoice Factoring is a style of working capital financing that’s bundled with back-office services:

  • Credit
  • Collections
  • Purchasing discounts, etc.

If those services don’t bring value to your business, invoice factoring is probably costing you too much.

How will your decision effect your cash flow?

If you need Cash Now for “working capital”, to cover payroll and other operating expenses, the right assets to use are the ones directly related to your revenue production – Accounts Receivable and Inventory.

For some businesses, working capital needs are seasonal or very short‐term in nature. If that’s your situation, a short-term loan probably fits the bill. For many businesses, however, working capital needs are continuing and ever‐changing.

The “golden rule” of business invoice funding is to match the term of the obligation to the asset being financed. You don’t finance a car for 30 years and you probably didn’t mortgage your home for 36 months.

George Thorson
Triumph EVP, Chief Operating Officer

How much does transparency matter to you?

If you’re being solicited for invoice funding of any kind, why not ask who the solicitor really is and who they’re working for. Ask to check them out on their website. If accountability counts, make sure they’re really working for you.

With Triumph, formerly known as Triumph Business Capital you’ll know who’s backing your business.

The folks who talk to our clients (and prospective clients) all wear the same jersey. Their pictures and contact information are posted on our web sites. We stand behind every claim, every representation, every day – even when we mess up. That’s just how we roll. For us, transparency is a core value. We want to know the people we’re doing business with and we want them to know us. Here’s the bottom line for you: Price: How much will it cost you and what are the terms of repayment? Structure: Do the terms of the repayment match your business needs? Transparency: You can’t build trust without it.