Invoice factoring and a credit stretch are both tools for getting paid faster. But one is much faster than the other.
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There’s nothing wrong with analog cameras. For the hardcore enthusiast who enjoys developing photos manually and isn’t frustrated when shots are out of focus, the analog experience is a joy.
But for everyone else, the digital experience is much better.
Digital cameras do the hard work for you. Leaving you time to enjoy your adventures safe in the knowledge that those once in a lifetime photos will come out perfectly.
Like analog cameras, factoring is okay. But today the digital credit stretch is the answer to getting finance quickly, fairly and without hassle.
The times they are a-changin’
While today we can download 1000 photos we took yesterday and upload them to social media, it seems mad that we used to go to the store to get our photos developed. Then wait 24 hours for them.
The digital camera is nothing new of course. Innovation happens rapidly in consumer goods.
But not in finance.
Finance was one of the slowest industries to ride the wave of technological innovation until the fintech revolution gained momentum.
But there are still some areas of finance that remain unchanged.
One of those is factoring.
Invoice factoring still requires human decision making and manual processes. Often, that means physically going into the bank and handing over accounts, along with your transaction history and more.
This human decision making could result in a bias - if the person making a decision doesn’t like something about you, it might not go in your favour.
If rejected, you’ve just wasted days of productive time. Time you desperately need because, presumably, your business needs cash now.
Sadly, factoring is inaccessible to many SMEs that lack creditworthiness.
If you’re accepted, you’ll get the money but it’ll be slow and expensive.
When you can access your online banking from your phone and order a TV, a laptop and even a car online, it seems ridiculous that some areas of finance are still so old-fashioned.
The future is here.
A credit stretch is to factoring what the digital camera is to an analog one.
Faster, fairer and easier.
A credit stretch will give you the money you need from the comfort of your office chair. Like loading your memory card into a laptop and scrolling through photos, a credit stretch is almost instant.
A Credit stretch is fast, automated (no-bias), done remotely (no need to leave your chair), with an immediate decision, very fairly priced, very easy to use, fast to setup and accessible to most SMEs.
Welcome to the future of invoice factoring and finance - the credit stretch.
Want to get paid faster or pay later? Create an account with Fellow Pay today.