Using apps in the office and in private is already a normal part of our existence. You would therefore think that software developers are getting the time of their lives because of the high demand for their services.

Focusing on the Problem

But on the contrary, many software companies are experiencing financial hardships because of the way their services are being paid. It is seldom that a customer pays for the services they rendered in cold cash. Mostly, their payments are in the form of checks. The problem is that these are not current checks which you can cash out in the bank. Most of the checks they are given carry a 30, 60 or even a 90 day maturity.

If you are paying for your bills on time, and you can�t get hold of your money in 90 days, you will be in a financial quandary. And this is exactly what some software developers are experiencing. They cannot pay the salaries of their employees on time, or they cannot settle their bills with their suppliers promptly.

Commercial Banks Make It Harder

One solution to their problem is to apply for an emergency loan with their local bank. But this poses another problem because banks don�t easily approve the application for a loan by a software developer.

• 1. If the software developer has no credit history, or if he has but it is bad, there is a good chance that his application will be rejected. The bank will consider him a financial risk.


• 2. A bank will also check the credit rating of the software developer. If it checks out as high, then your loan will have greater chances of being approved. But if it is low, then they will gladly show you the door.


• 3. A bank will only consider a loan application if it is covered by collateral. But what if the software developer is just starting out? He may not have enough assets to start with that the bank can qualify as good for collateral.


• 4. Bank loan processing takes time. With all the documentation, credit and background checks and related things, it will take a bank somewhere between 30 to 90 days before they render a decision as to whether they will approve your loan or not.

So, is there no other recourse for software developers other than the bank? Fortunately there is. If they will seek the help of a factoring company like NeeBo Capital, they will not encounter the difficulties detailed above. Instead, they can expect to have their cash ready in just a matter of days, at the lowest interest rates in the industry.

Quick Link to Financial Resources:

General Articles about Accounts Receivable Financing and Factoring:

»   08/01/2012 Debt Financing or Off Balance Sheet Financing?

»   11/30/2012 Utilizing Factoring as a Alternative to Traditional bank Credit

»   07/22/2012 Increase Your Business Lines Of Credit By Factoring Accounts Receivables

»   09/15/2011 What to know when selecting a Factoring Company