When you are a new business, it is beneficial to build your credit. By borrowing on your receivables, you will be able to earn credit points each time. You can also avoid stiff penalties (and credit report demerits) for forgetting your monthly repayment to the bank.
Other benefits of borrowing money on receivables are:
Although there may be factoring companies in your local area, you can easily set up an account with similar services online.
Unlike bank loans that require you have equal property collateral, invoice factoring services can allow you to borrow much more. Regardless if you are a small business or a multinational corporation, you can find much easier solutions by borrowing money on your receivables.