Payost vs. Business Backer

You and your crew have just returned from 10 grueling days on the road, helping to restore power to hurricane ravaged communities. The cost of keeping all those men and machines on the road caused you to burn through all your working capital. And now you face the prospect of having to wait 90 to 120 days before the utility will pay off your invoice.

Just how are you supposed to keep your own lights on, your staff paid, and be prepared to answer the call in the event of another emergency? Some storm restoration company owners sometimes turn to Business Backer invoice factoring as a way to deal with cash flow issues. But is that really the best solution?

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What is Business Backer?

The Business Backer is a company that offers a variety of business financing products, including invoice factoring, to businesses with minimum annual revenues of $180,000. They have been around for some time and have a generally good reputation.

Their invoice factoring service appeals to a variety of businesses that experience cash flow problems as a matter of course, including freight companies, and storm restoration companies.

When you work with Business Backer, you’re matched with a funding advisor who takes your information and who explains your options to you. They may advise you to take advantage of one of the company’s in-house financial products or they may hook you up with one of their finance partners, of which they have many.


How Does Business Backer Work?

Business Backer works by extending loans to companies based on the value of their outstanding invoices. In this way, the company’s able to generate short-term liquidity that enables it to meet its near-term obligations and avoid the disruptions caused by cash flow issues.

These short-term loans fall under the umbrella term “invoice factoring.” Exactly how much you receive and what rates and fees are applied will depend on a number of things. More on that in a moment.

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Business Backer Rates and Fees

On their website, Business Backer claims to fund 85 to 90% of the value of your invoice. In short, you sell your invoice to the company or one of their many financial services partners. Based on your qualifications they will then forward you the aforementioned 85 to 90%.

When the customer pays off the invoice Business Backer or their partner retains the amount they loaned you plus all fees and then returns any balance to you.

It all sounds very well and good—in theory. The reality, however, is that unless you have perfect credit, a robust business generating substantial revenues, and a client that pays off your invoice quickly, you won’t be receiving anything near 90% or 85%. Or even 80%.

As the fine print on their site explains: “Actual offers vary based on your application information and lender.” But that’s not all:

  • You will also be charged a weekly factoring fee of about 1% of the value of the invoice for every week the invoice goes unpaid.
  • If your client fails to honor the invoice, you’ll be forced to buy it back from Business Backer and pay a significant penalty.
  • The lender will perform a hard pull credit check that will damage your credit score and...
  • Your customer will be notified that you sold the invoice, thereby raising doubts about your solvency.

Business Backer invoice factoring has helped many companies over the years. But if you have unpaid invoices being held by a utility or other AAA credit rated company, you’d be well advised to choose Payost invoice financing instead.

“Working on the right thing is probably more important than working hard.” — Caterina Fake

Business Backer Application Requirements

The exact Business Backer application requirements will vary, depending on the size and type of your business. Requirements will also depend on the type of funding being offered and the particular requirements of the lender, which often vary between the Business Backer and their partners.

With that said, the following general guidelines apply:

  • A minimum of 1 full year in business
  • Minimum annual revenue of $180,000 (the lower your income the higher your fees)
  • A personal credit score of 550 or higher

To apply for funding with Business Backer, simply navigate to the “Apply for Funding” page on their website. There you’ll be asked to open an account by providing:

  • Your name
  • Phone number
  • Email address
  • Annual business revenue
  • Desired funding amount

Once you submit your application, a company rep will contact you with an offer. You’re told in the fine print on the site that they won’t do a hard pull credit check in order to provide you a funding offer. But be aware that any offer they make at this preliminary stage is non-binding on them.

And that you won’t know the actual repayment terms and fees until you make it clear that you wish to accept the offer and consent to a hard pull credit check so there’s no getting around it.


Business Backer Advantages and Disadvantages

The Business Backer is a company with a fine BBB rating and a reputation for friendly and helpful customer service. With that said, there’s more to business finance then a pleasant voice on the other end of the phone. Here are the relative pros and cons of dealing with Business Backer.


  • A long established company
  • Deep pockets and an array of funding partners
  • Relatively simple application process
  • Fast turnarounds once approved
  • Outstanding customer service


  • They do a hard pull credit check
  • They or their partner purchase the invoice
  • Fees escalate the longer the invoice is unpaid
  • Punishing rates for those with less than perfect credit
  • You have to buy back non-performing invoices
  • They inform your customer you had to sell the invoice
  • Your reputation is tarnished as a result

The last two items are particularly important and here’s why. Business Backer claims that they’re doing you a favor by notifying your customer that you sold the invoice. According to this line of reasoning, your customer will breathe easy knowing you have sufficient capital to remain viable.

The reality, however, is typically quite different. Far from being reassured that you’re on solid financial ground, the utility or other company is likely to take the act of selling invoices as a sign of desperation on your part. This could damage a reputation you may have spent years meticulously crafting.

A better idea is to take advantage of Payost invoice financing. You’ll get a higher payoff on your qualifying invoices and your dealings with us will remain completely confidential.

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Business Backer Review

A quick review of Business Backer invoice factoring indicates it is not a good choice for companies with limited cash flow and individuals with less than perfect credit.

Business Backer vs. Payost

Business Backer invoice factoring likely has something to offer large companies that need the occasional infusion of cash and can absorb the rates and fees without much trouble. However, for business owners with less than stellar credit or who have unpaid invoices being held by AAA credit rated companies, they are a poor choice.

Payost, on the other hand, is the ideal choice for such companies and here’s why:

  • We never (ever) do a credit check
  • We don’t care how long you’ve been in business
  • We don’t purchase your invoices, we pay them
  • We don’t force you to repurchase invoices
  • We don’t inform your customers you came to us for assistance

Bottom Line: Should you try Payost?

Regardless of your company size or history, if you have unpaid invoices being held by a AAA credit rated company, you owe it to yourself to receive the best value for those invoices. Payost invoice financing is how you do that. So yes, you should forego factoring and try Payost.

We’re the smart alternative to:

  • Early payment financing
  • Short or long-term lines of credit
  • Merchant cash advances
  • Bank financing or loans
  • Small Business Association loans

Stop selling your company short with factoring and apply for Payost invoice financing instead. It’s likely to be the best business decision you make this year!

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