When it comes time to secure funding for your recruiting or staffing firm, banks and other funding companies may not be your best choice. With the interest rates and fees involved with bank and other funding company loans, you often end up paying more in interest than anticipated. By opting for tier-based funding from Madison Resources, you gain additional value and predictability to help plan for future budgeting needs.
Here are some reasons you want to opt for tier-based funding from Madison Resources rather than a business loan from elsewhere.
The daily rate is what other funding companies charge for business loans. The daily rate is typically locked in for 30 or 50 days. After that, the rate is compounded. This means that the funding company charges interest on the initial principal and may charge on any accumulated interest. It is typically at a much higher rate. As a result, you pay more dollars in interest by the end of your permitted time frame. This makes predicting cash flow and budgeting significantly challenging and, if your customers are slow payers they become very expensive.
The fees that banks and other funding companies charge for business loans increase your total interest payment. For instance, you might pay an application fee to process your loan application. This often covers the cost of a credit check and is nonrefundable, even if you aren’t approved for a loan. If your loan gets processed, you could pay an origination fee to compensate the lender for their time and effort. You may pay a processing fee or underwriting fee to compensate for the time and energy spent reviewing and approving your loan application. Services fees may be charged for the bank to bill you, collect repayments, and provide customer service. If you pay off your loan before it’s due, you could face a prepayment fee. Paying off your loan by check instead of an online portal can result in check processing fees. There may be late payment fees if you miss a payment. Because of all these fees, your loan might cost you more than you anticipated.
With tier-based funding from Madison Resources, you gain access to multiple levels of funding to fit your business needs. Depending on the size of your staffing firm and amount funded, we offer one rate extended for up to 90 days. You gain more personal attention and value from our smaller, tier-based company than you would from a bank or other funding company. We provide you more wiggle room for your customers to pay your invoices and do not assess fees. You can afford to go after those larger accounts who are pushing for longer and longer terms. You gain greater predictability to plan your payments and create budgets.
Access Tier-Based Funding from Madison Resources
Access tier-based funding from Madison Resources. Save money and gain additional value when choosing us over a bank or other funding company. Find out more today.