A recent study shows that 60% of debtors don’t know exactly what the main differences are between a non-bank financial institution and a bank. In other words, when you run a business, whether you’re just starting out or already established, it’s often unclear which route to take when you need new financing. But we know how important it is to have all the facts at your fingertips so you can make the right decision for your business.
When you’re looking for financing for your business, it helps to focus on the following factors:
- What percentage of the amount you need gets financed
- What additional costs are involved
- How much paperwork is involved
- How transparent the services are
The main differences between financing from Instant Factoring and financing from a bank:
1. Amount financed
If you’re considering factoring but haven’t decided yet, it’s good to know that we finance up to 100% of an invoice’s value, while a traditional lender usually stops at 80%.
2. Assignment
Generally, banks make financing your first invoice conditional on assigning all the others too, while Instant Factoring pays you for the invoices you actually want to finance, whether that’s just one or several.
3. Credit insurance
Banks provide financing only within the limits set by credit insurers, which can often hold you back. Instant Factoring approves credit limits without requiring credit insurance.
4. Receivables collection
Banks almost always charge additional fees when it comes to receivables collection. We offer our customers free collection services to help you collect receivables faster.
5. Transparency
When you need fast financing for your business, you need to watch out for possible hidden costs related to application review, administration, fees, or extra charges.
The factoring service offered by Instant Factoring has a single, fully transparent fee that includes application review, administration, transfer, and receivables collection.
A traditional lender may send you complex offers with extra fees and multiple costs you can’t calculate precisely, making it hard to know what to expect.
6. Signing the contract
A traditional lender only offers you credit limits after you sign the contract. Instant Factoring offers a pre-approval process, and credit limits are available before you sign the contract.
7. Customer verification
When you want to finance an invoice, it’s normal for the lender, whether it’s a traditional lender or a non-bank financial institution, to verify your customer. Of course, it’s in your best interest to make sure you have a reliable customer who pays on time, but we know you don’t want that verification to mean extra costs for you.
While a bank charges additional fees to assess customers, Instant Factoring offers customer verification for free.
As an entrepreneur, you have a lot on your plate: paying salaries, keeping your company’s cash flow healthy, and growing your business. When you need financing for your plans, you want everything to run smoothly and you want to know exactly what to expect.
Factoring gives you exactly what you need: a fast, 100% online process, a fair fee, and access to your money within 24 hours.
If you’re still not sure factoring is exactly what you need, contact us. You’ll be surprised by how quickly we reply.
Turn an issued invoice into cash in 24h.
You focus on your business, we support your cash flow. Collect cash from your issued invoices instantly, without waiting 30, 60, 90, or 120 days until the payment term.
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