- It’s fast. Really fast. Conventional financing from banks can take weeks or even months to obtain—and even after all the waiting, it’s not guaranteed you’ll get all (or any!) of the cash you need. Approval for invoice factoring can happen in less than 5 business days. Once approved, you can have money in your account within 24 hours. No more waiting for sluggish payouts or lengthy application and approval times!
- Build or re-establish credit — having little or poor credit can be detrimental to anyone, but especially a business trying to gain more working capital. By using factoring services, you can establish a strong line of credit by using your customers’ creditworthiness. Since they are the ones ultimately paying the bills, factoring companies are truly only concerned with your customer’s credit and payment history. Additionally, by having cash to pay off existing debt or being able to cover current costs, you’ll build your own strong credit history.
- Back office support –Taking care of payroll and other administrative duties can be cumbersome, especially when you’re more worried about covering expenses. When you work with a factoring company, an account manager assigned to your company can take care of these tasks for you—from running reports to following up with debtors. Account managers are experts in the field and your market, and will help you handle the small stuff, so you can get back to the big stuff.
- More cash means more business opportunities! If your money is currently tied up in unpaid invoices, you’re limited on what types of new projects and/or customers you can pursue. However, by factoring your invoices, you can regain the cash flow you need to take on bigger and better deals. Vendors will sometimes even offer discounts or other incentives for early payoffs. Factoring is adjustable so that the more invoices you factor, the more money you’ll have access to!
- Flexible funding – Unlike other forms of financing, factoring is an extremely flexible option. With traditional loans, you’re often locked into rigid terms and strict regulations to adhere to. With factoring, there are no monthly minimums or maximums to meet and no long-term loans to repay. You get to choose which invoices you factor—giving you complete control over your finances!
- Various industries— Invoice factoring is the process of selling your business’s invoices for goods or services that have been completed for another business. From temporary staffing, IT services, transportation or construction and manufacturing, almost any industry can benefit from using factoring services. Whether you’re a small start-up looking for funding or an established mid-to-large sized company, factoring can help your company thrive!
Six Ways Factoring Companies Can Grow Your Business
If your business had more access to cash flow, how would you spend it? Cover payroll, pay off debt or maybe even expand operations? The possibilities are endless, but getting more working capital is not as difficult as you might imagine. Invoice factoring can transform your business—giving you access to cash that normally you’d have to wait 30, 60 or even 90 days to receive. Slow-paying customers can hold back business operations, impeding growth and prosperity. Check out these ways invoice factoring can benefit your business and help you become more successful than ever!FactoringBhat3659