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Putting your home in danger.

There have been reports in the news today that many small businesses in the UK have been taking finance packages and securing them against their own houses in a bid to increase capital and funding so they can carry on trading.

This sends shivers down our spines at Select Factoring as we know that there are other ways to secure funding without putting your home in danger.

Imagine the scenario if you will, you’ve taken out a loan and secured it against your home where you and your family live. you have to take into consideration the risks of doing such a thing.

Depending on the value of your home, you can take out a secured loan for all manner of things, but you are at risk of loosing your home if you do so. The benefits of taking out secured loans is that you can enjoy long payment terms, which keep down your monthly repayments. The downside is loosing your home and possibly having people turning up on your door demanding money. This is not a nice situation for anyone, let alone a family who are content in their home and are bringing up their children.

So what are the other options? If you are a business owner Factoring is a simple, quick and easy solution. You are not taking out a loan which you will have to repay over numerous years and incur interest. It doesn’t tip you into debt. You are using your own money. How?

Factoring allows you to gain funds against invoices you need to send out to clients. Rather than having to wait 30, 60 or 90 days for payment, a factoring lender can provide those funds within about 24 hours, which is incredibly quick. They then chase your clients for the invoice payments and once everything is complete, the factoring lender takes a small fee for using their services. Why would you put your business and home at risk with a secured loan?

Think savvy, think factoring.

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