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.
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.
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!