Monthly Archives: June 2016

How Does Invoice Factoring Help Your Company Grow And Succeed?

Every business that wants lots of working capital, so that bills get paid and the company can grow, should try Invoice Factoring. Factoring is simple: A factoring company funds the cash payment based on the amount written on the invoice, then collects the payment from the customer. The final step is releasing the reserve balance minus the factoring fee. The process is easy, but how does invoice factoring help a company?  What benefits does it provide?

Fast Access To Cash

Once the invoices are approved, you get the cash typically within the same day. This happens after the initial setup process that takes a few days, depending on how fast you gather the required documentation, but it’s still very fast compared to bank business loans that can take you months!

Debt-Less Cash Flow

This process is not a loan, so it doesn’t appear on your balance sheet. So your financials are more appealing for potential investors.

Term Flexibility

You don’t have to worry about extra fees or long term contracts. You can choose the invoices or parts of invoices you want to factor.

Fees

The costs of factoring have gone down in the past few years. In fact, some of the lowest rates are around 1.0%. Fees do vary based on factors such as industry, creditworthiness, advance rates, quantity of invoices, and so on.

You Are In Control

You choose which invoices or parts of invoices to factor as you need cash. So instead of stressing about cash, you can focus on growing your business.

You Can Grow Your Business

With invoice factoring, you have the ability to increase inventory, add staff, negotiate discounts with suppliers and take on new jobs and new customers.

Strong Financials Aren’t Required

A bank business loan is all about strong financial information and good credit, but invoice factoring doesn’t require those things. You can factor even if you’ve had a few issues along the way.

A Better Way To Manage Receivables

With factoring, you have the option to focus on your business and let them manage your receivables. With online access to your account, you can view your reports at any time and know the status of your invoices.

Factoring is very helpful for any business. It gives you the cash you need without going into debt. It’s a great way to boost business growth and will help your business when you are in need of funds. Don’t wait. Try Invoice Factoring right now. It might be the best solution for your business!

5 Hidden Benefits of Receivables Factoring

Business owners often find themselves in a position where they need additional cash for their business. Many are turning to accounts receivable factoring as an easier alternative to bank loans. Some of the hidden advantages of factoring include:

1. Staying Debt-Free

Many business owners who need cash are reluctant to go into debt to expand their business or to take on bigger contracts. Receivables factoring allows business owners to leverage their invoices without going into debt.

2. Keeping Company Equity Intact

One challenge companies often face when seeking new investors for much-needed cash is the demand for equity in their company. Companies who are not willing to give up equity in their company can use factoring to their advantage and get the cash they need without losing vital control over their business.

3. Controlling What Gets Factored

Rather than being forced to put a lien on all of your accounts receivables, when you factor invoices, you alone make the decision regarding which invoices get leveraged. You can stay in control if you are working with the right company.

4. Improved Credit Rating

Businesses who are just starting out or those who have been in business a while often face seasonal swings that can ding their credit rating. Fortunately, when you are taking advantage of receivables factoring, the improved cash flow means you are paying your bills on time improving your credit standing both with vendors and with credit bureaus.

5. Nearly Instant Cash Flow

Regardless of the size a business is, there is always a possibility that cash flow will be irregular. Whether a company needs to meet payroll, buy a new piece of equipment or replenish inventory, chances are cash is needed. Leveraging invoices provides nearly instant cash flow since most factors pay out in just a couple of business days.