Avoid the Hazards of Short-Term Lending

As a small- to medium-sized business owner, you may have heard the staggering statistic that an average of 50% of all small businesses fail within the first five years. One of the main reasons for this is a failure to maintain an adequate flow of capital. Many smaller businesses in Texas run on a tight margin with minimum overhead, and this requires a steady flow of cash into the business.

In what is perhaps a detriment to individuals, families and businesses alike, short-term lending hovels exist on almost every corner. These title loan firms and other quick-money lenders promise fast cash when you are in a pinch; and they know how to make it sound good. And sometimes, when your business cash flow is tight and you are facing payroll expenses, fuel bills or other operating needs, their offers may look good – but only at the moment of crisis.

The Perils of Credit

Most owners of small or medium-sized businesses know that when you are struggling to stay afloat, taking on additional payments is not the best course of action. A short-term cashflow problem can turn into a long-term debt problem if you take out a title loan on your company vehicles or use some other form of short-term loan solution.

One of the keys to business success is avoiding any debt that isn’t absolutely necessary. Operating with cash in the bank is a much better solution that stressing over loan payments from past tight spots – especially when those payments do nothing but create new financial stresses that linger for much longer. Plus, with the inordinately high interest rates these firms charge, they might as well hold a gun to your head while you sign the papers.

Leverage Your Own Assets with Factoring

JOBE Services, Inc. of Humble, Texas, offers a much better solution for small- to medium-sized businesses all over the Great State of Texas: Non-Recourse Factoring. Our brand of factoring allows you to leverage your own existing assets for cash without putting those assets in jeopardy, as you would by using them as collateral for a loan.

Factoring is not a loan and does not harm your credit – we do not pull credit on your business. Factoring is simply a financial tool where you sell your outstanding invoices for services rendered to us for cash right now. Most service businesses perform their work and submit an invoice for payment that has 30-day or 60-day payment terms; some even have 90-day terms. That’s a long time to wait for your money.

Factoring allows you to get your money now – YOUR money, not a loan – for a small fee. Then your creditors pay us the invoice. And, with non-recourse factoring, when we approve your invoices for payment, you are in the clear. If for any reason your creditor doesn’t pay, you owe us nothing. Plus, we have no long-term contracts, no hidden fees and no tricks.

Contact JOBE Services, Inc. today and ask about non-recourse factoring to avoid becoming a slave to short-term lenders/sharks.