Tag: invoice factoring

Invoice Factoring is a when a business sells its accounts receivable to a third party at a discount.

Invoice Factoring: A Better Way to Manage Your Accounts Receivable
A vexing problem almost every business faces, large or small, is accounts receivable. How can you get payments from your customers in a quick and timely manner? Is there a way to get them to pay faster? And if not, is there a way to get around the 30- or 60-day lag from when your invoice goes out and their payment comes in?

The answer is yes! Through “invoice factoring,” you can sell your accounts receivable to a third party (known in the business world as a “factor”). The factoring company will pay you immediately and collect the money themselves down the road. This innovative financing concept provides businesses of all sizes with much-needed flexibility in obtaining capital. Factoring costs are directly related to the business cycle, making it an attractive option for various industries, including factoring for service providers

Want to make the most of invoice factoring? Here are a few helpful tips to get you started:
- Understand what invoice factoring is and what it isn’t – Invoice factoring and invoice financing are two types of accounts receivable financing. Invoice financing is similar to invoice factoring in that it’s a way for businesses to get paid quickly on an invoice, rather than having to wait weeks or months before payment is officially due. However, invoice financing doesn’t involve selling invoices. Factoring can certainly help your business improve its short-term cash flow and enable you to get almost immediate money from outstanding invoices. However, factoring cannot, and will not, solve ongoing issues such as customers with bad credit or clients who exceed their credit limit. Yes, a factoring company can aid with some of these, such as performing customer credit checks on your behalf, but ultimately, it’s up to you to determine who is creditworthy, how much credit you should extend, and the terms and conditions of that credit. If you insist on extending credit beyond the amount a factoring company recommends, you are increasing your risk.
- Organization, organization, organization – Before you can even start to take advantage of invoice factoring, you have to know who owes you, how much they owe you, and when that bill is due. After all, if you don’t know the answers, how can you expect a third party to know? If you haven’t done so already, get your customer account files into shape before you engage a factoring company. Make sure all customer files have every piece of correspondence between you and the client, as well as all invoices and payments. Once you’ve done this, you’ll better understand the relationship’s history and, more importantly, you’ll have a clearer picture of the outstanding invoices you can send to a third-party factoring company. Plus, you’ll have an organized accounts receivable system, which is always a good thing.
- Be open, accurate, and include all liabilities – It’s natural as a business owner to be leery of disclosing delicate company information to strangers. However, to get the most bang for your factoring dollar, it’s best to be upfront about all liabilities, including the extent of your company’s indebtedness. By being open and honest, the factoring company can get a more accurate picture of your situation and can better devise a strategy for accounts receivable factoring.
If you’re a business owner navigating accounts receivable challenges, it’s important to recognize that different industries may require unique factoring solutions. For example, staffing factoring is specifically tailored to address the cash flow needs of staffing agencies, allowing them to meet payroll obligations without delay. By leveraging this industry-specific option, staffing companies can maintain steady operations and focus on growth, rather than worrying about gaps in cash flow caused by extended payment cycles. Equally, businesses in the oil and gas sector can leverage oilfield invoice factoring to address industry-specific challenges related to maintaining cash flow.

What are the benefits of invoice factoring?

By uncovering the benefits of invoice factoring, you’ll also learn how it can help grow your access to working capital without going into debt!

Invoice factoring is an alternative form of financing that is available to businesses that may not have an established banking record with a major lender. Banks and traditional lenders often operate on a line-based financing model based on what your business has already done and the assets you currently own. Invoice factoring, on the other hand, is an innovative way for your business to access the funds you have tied up in your accounts receivable.

Here are four major advantages of invoice financing:

1. Shift your cash flow into high gear

Applying for business loans or alternative financing options can take months to get approved. With invoicing factoring, your business can get much quicker access to cash if you have immediate financing needs.

2. Financial flexibility

If your business requires financial flexibility in terms of maintaining cash flow, then invoice factoring would be your best option. This way, invoices don’t have to be paid in full before there is money in the business account.

3. Higher probability of financial approval

When determining the chances of accessing funding – aspects such as your credit score, collateral, and financing history are often considered with traditional financing. However, these are not required for invoice factoring approvals. Your factoring partner is more focused on the payment history of the customer required to pay the invoice. This is important to understand the level of risk that would be taken in invoice factoring.

4. Save time and money – No collateral required

Normally, when a business applies for a loan or line of credit, the bank requires the business to have upfront collateral such as equipment, vehicles, buildings, inventory, or even intellectual property. However, with invoice factoring, a business doesn’t have to worry about showing that traditional collateral. This can save you enormous amounts of time and paperwork.

With these tips in hand, what can invoice factoring do for you? By employing a third-party factoring company, you’ll be able to now:
- Improve business cash flow
- Invest that money back into your business and into your staff
- Move resources away from collections into more useful and profitable positions, such as sales, marketing, or customer service
- With more reliable cash flow on your end, you’ll be current with your suppliers and may even be able to negotiate better terms.
Now that you have a few ideas on how to make the most from invoice factoring, how do you choose a factoring company? Here are a few questions to ask when considering employing an accounts receivable factoring company:
- How long have you been in business?
- What are your fees?
- Must I submit all invoices, or do I have a choice in which ones I send to you?
- Are you industry-specific? Do you have experience with companies like mine?
- May I see references?
Choosing an invoice factoring company is, like all business decisions, one that should be made only after careful consideration. It’s important that you find someone who understands your business and your unique situation. No two businesses are alike. Find a factoring company that not only understands you but one that can offer you a range of solutions to your cash flow problems. The future of your business could be riding on your choice, so be sure, as with any transaction, you arm yourself with the best information you can find in order to make an informed decision.

If you’re ready to grow your business by factoring your accounts receivables, Charter Capital can help. Establishing yourself and finding out your accounts receivable factoring rate is free, so you can get started on improving your cash flow right away. Request a complimentary invoice factoring rate quote now.
September 9, 2019
Still Looking For Financing?

Many Small and mid-sized companies that are looking to grow are still running into difficulties when looking for financing: Loans are still hard to come by and can be more costly than before the recession. Commercial lending is still weak and small business lending remains flat. This indicates that securing a lending source is as difficult as it has ever been.

One study suggests that less than a third of small businesses that desire credit would qualify for traditional or SBA-backed loans. In the wake of a devastating financial downturn, banks have continued to tighten their lending practices in order to lower risk levels and comply with tougher regulations. This leaves millions of small and mid-sized businesses without a source of financing to grow or add new employees.

As the economy continues to struggle toward recovery, it is increasingly important for small and mid-sized businesses bolster their finances. Since it is well known that small and mid-sized businesses power the economy, it is possible that an increase in lending to this market segment could help further improve economic conditions and job growth.

Even if we are in the beginning of a period of economic growth, the fact remains that any rebound from the recession may be muted and difficult to see in real terms. Even though economists see recovery, it is still not strong enough to have any real impact on small businesses today.

Companies that are still looking for some form traditional bank financing are better off looking for private asset-based funding. During times like these, asset-based financing (such as invoice factoring) has come to the aid of the small business sector many times by providing the badly needed financing that traditional lenders are currently unable to consider.

Dealing with an uncertain economy is never easy, especially for small businesses. Unlike their larger counterparts, small businesses rarely have the resources to monitor and take corrective action for every trend and issue. And even those owners who have weathered numerous business cycles may be faced with new circumstances that confound their otherwise successful instincts and knowledge. But a predictable source of financing can certainly ease this pressure.

September 9, 2018
The Difference Between Purchase Order (PO) Financing and Invoice Factoring

If you’re interested in realizing sales growth for your business, maintaining a steady, predictable source of cash is vital. Even for your goods and services sold in the ordinary course, there’s still a chance that your invoices won’t be paid immediately, leaving you with gaps in your cash flow. In order to avoid cash flow gaps like this, however, there are third-party services available to fund growing businesses whose sales are dependent upon offering payment terms within the range of 10 to 90 days.

These services are designed to help businesses pay their obligations incurred in connection with the sale and delivery of products or services. Among these services are purchase order financing and invoice factoring, both of which provide funds for the purpose of fulfilling orders. However, there are a few distinct differences between purchase order financing and invoice factoring worth knowing.

Purchase Order Finance and Invoice Factoring Are Two Different Things

Purchase Order (PO) Financing:

In business, purchase order financing (PO Financing) is a short-term financing method that businesses use to cover the cost of manufacturing or purchasing goods that have been pre-sold to customers.

This service can only be used by businesses that manufacture or distribute tangible products like clothing, furniture, books, etc. Third-party companies that provide purchase order financing cover the up-front costs that the business would pay, such as to a supplier, for the purpose of fulfilling a customer order. The financing company deducts its fee and transfers funds to your company. After the finance company receives payment from your customer, it deducts its fee from the payment and sends the remaining balance to you.

PO financing is usually used in a situation where a customer has ordered the goods, but the business does not have enough capital to pay its supplier upfront. So, the borrowing company will approach a PO financing company, which will evaluate the purchase order and pay the supplier after a successful application process.

After receiving delivery of the products and fulfilling the order, the borrowing company would then invoice their customers as usual. Once your customer receives the goods, you invoice them for the fulfilled order, and they pay the purchase order financing company directly. The customers then send their payments directly to the PO financing company, at which point the PO Financing company will deduct its fees and reimburse the remaining balance to the borrowing company. The finance fee and the terms for applying vary according to the third-party company’s specifications.

Invoice Factoring:

Invoice factoring can be used by businesses that provide both services and tangible goods. After the customer has received the goods or services, businesses send out an invoice detailing the goods and services purchased, as well as the terms of payment. This creates an account receivable. In invoice factoring, businesses sell their accounts receivable to a company that provides factoring services at a discounted price. In today’s business world, the opportunity to make sales is usually dependent upon being able to offer your customers generous payment terms. While this is an effective way of generating business revenue, customers will take time to make the payment due on the invoice, leaving the business short of operating cash.

A third-party invoice factoring company acquires unpaid invoices from the business by paying the business upfront in exchange for receiving the payment that is eventually made by the customer account. This allows the business to manage operating costs before payments are actually received from customers for open invoices. The cost of factoring your invoices is a fee earned by the factoring company that is typically equivalent to a discount that you might offer a customer for prompt payment.

Both options can be important considerations for a growing business, especially as the costs of operation increase. Another pro for both invoice factoring and purchase order financing is that they are both viable alternatives to traditional loans, especially for start-ups and small businesses. This is because both factoring companies and PO financing companies are more concerned with the creditworthiness of your customers (those responsible for paying the invoices) than the business’s credit history.

If you are a distributor of goods, PO Financing can likely be a valuable solution, especially for online retailers who may receive payment before the product is shipped. Invoice factoring is recommended for companies whose operations rely on invoice payments from customers, which can be a delayed process. Both are valuable solutions to business needs and can help you maintain your bottom line while you facilitate growth. It’s also worth noting that there are benefits of combining factoring and PO financing, as you can leverage both to address different concerns.

To find out more about your options when it comes to invoice factoring, contact Charter Capital today!

September 8, 2018
Factoring: Funding small business growth

Funding small business growth

In the current banking environment, factoring finance may be a cost-effective solution for business owners to obtain the necessary working capital for small business growth.

Cash obtained from factoring outstanding invoices can be used as a short-term working capital asset funding source to pay for labor, expenses or, suppliers in order to purchase products or services.

Given current economic conditions, banks are still less likely to open new lines of credit or increase current credit limits due to significantly tighter credit criteria and your credit score. What’s more, banks view businesses with significant growth as being at high risk of successfully executing such growth.

Because of this, many small businesses with growth opportunities are not getting business loans or lines of credit they need.

Invoice factoring can be a valuable tool to support business growth. For example, a service business has an opportunity to add a new client that requires adding new employees. The company can receive factored funds upon issuing the invoice and, in turn, use the funds for the payroll used to support the additional business. For staffing firms, this approach is particularly beneficial, as invoice factoring provides a steady cash flow to cover payroll expenses, ensuring they can meet payroll obligations without waiting for client payments.

There are many other examples, but the theme is the same: Cash flow received from an invoice factoring company is used to pay for labor, materials, or inventory in conjunction with completing delivery and issuing an invoice to the customer.

Through invoice factoring, a company sells its accounts receivable to improve its working capital, which would provide the business with immediate funds that can be used to pay for company expenses. Invoice financing allows a business to use its unpaid invoices as collateral for financing.

The invoice financing company will advance immediate cash based on a percentage of the invoice amount upfront, less the discount rate. They will pay you the remaining amount of the invoice value, less any other factor fees as per the factoring agreement.

Ultimately, if businesses need financing for growth, there are not as many financing options or opportunities available today. A slow accounts receivable cycle or recovering from unforeseen circumstances can put a business in a cash crunch quickly. There may be many reasons for businesses to consider factoring finance, especially if traditional bank financing is the least desirable option.

September 8, 2018
Factoring Can Be A Road Back to the Bank

Very often, fast growing companies face a cash-flow crunch due to a limited line of credit. When a bank establishes a line of credit, it’s usually based on a company’s past performance and it’s difficult to increase that line. A young, growing business that is expecting fast growth that requires quick access to cash is often constrained by the bank’s lending rules and is unable to act outside that traditional lending standard.

For example:

An oilfield services company had $1 million in annual sales and also had a $125,000 line of credit from a bank. However, a new contract substantially increased sales to almost $3 million annually. The line of credit clearly did not address this company’s cash flow needs to support its need to increase operational capacity. With a factoring solution, the business was able to meet its immediate cash flow needs as well as increase sales in a flexible way.

The beauty of factoring

Banks refer businesses in these situations to factoring companies all the time. This is because, instead of looking at past performance as the basis of funding, in a factoring relationship, access to immediate cash grows as sales grow. Quick access to funding helps growing businesses accept new contracts with confidence, offer better term to their customers, and maintain a healthy credit relationship with suppliers while obtaining attractive pricing with current vendors.

Back to the bank

These businesses continue their relationship with the bank for deposits and future traditional financing needs. Through factoring, the business becomes more established, develops a more predictable cash flow, and it becomes more attractive to its bank for an increased line of credit. Many times, banks will look at the past year’s performance of a business, as well as a full year of profitability, sales growth and a history of sufficient revenues.

The road back to the bank is a forward-thinking proposition. Factoring your invoices is a fast and flexible financial tool that can ultimately return a more financially attractive business back to the bank.

October 1, 2014
Small Business Street Smarts

Small businesses often fail to grow for lack of funds to cover short term working capital needs, not because business is bad! The biggest challenge faced by most small businesses is how to fund the growth that makes owning your own business a worthwhile endeavor. Once a business is up and running, cash flow issues, funding growth, dealing with the natural ebb and flow of the sales cycle, become the daily issues that can potentially undermine the financial future of the business. Traditionally, start-ups use a small business loan, as seed capital, which remains an ideal, low risk approach. Private investment is another common, but more costly, route for small business to take in business capital. Regardless of the merits to either source of funds, when does it make sense for small business to use alternative sources of funding, like Invoice Factoring?

There are many reasons why traditional bank financing may not be a good option for you. The loan application process can be long and cumbersome. The delay from the time of submission of the application to loan disbursement can be substantial as well, putting extra constraints on your ability to timely pay your operating costs. In some cases, you may not be creditworthy, or you may have used up your available credit limit, or you may have too much trade and other debt built up in your business.

In the case of private investment, capital cash injection is given in exchange for equity in the business. This type of investment can take various forms, but it will ultimately end in diminished equity in the company that you worked so hard to build. While more often used by large corporations, the costs associated with private investment are more seriously felt by small businesses, especially in situations where there is only one or very few owners involved. Private investment usually demands ownership rights which dilutes the value of ownership shares and usually creates a situation where the private investor has a preferred status relative to the original owner and priority in terms of getting repaid. Additionally, it usually results in a lack of control over the decision making processes relative to the demands of the investor and the capital invested. These hidden costs need serious consideration.

So, how do you finance an unexpected opportunity to double your sales? Given any opportunity to meaningfully increase your sales, how do you manage, especially when you know that your customers will expect customary payment terms? Making application for a new or expanded bank line of credit can result in long and protracted negotiations. If the banker decides your desire or ambition to grow is too aggressive or financially risky, then where do you turn? If you have no or limited availability to draw on a traditional line of credit, then you will most likely miss the opportunity to increase your sales. The time it would take to acquire capital from a private investor is certain to be even more protracted and costly. Well, this is a good example of when you should consider an alternative funding source like “Factoring”. Factoring is the financing industry term used to describe the sale of accounts receivable (open invoices) at a discount from their face value. It may not sound common, but over $1 trillion in sales is factored worldwide annually. In the United States, there are many independent finance companies that offer Factoring. Some banks even have Factoring divisions. In modern times, Factoring has become a champion of small business and an ideal alternative to a bank loan or private investor funds.

Factoring involves the sale of accounts receivable at a discount. Essentially, you sell your receivables (open invoices that are due to you from your customers) to a “Factor”, who discounts the value of them and pays you in advance of actually collecting payment on the receivables. The discount taken by the Factor generally ranges from 1%-3% for invoices collected in the normal course of business. Essentially, the Factor is providing you with funds, not on the basis of your creditworthiness, but on that that of your customers. So, even though your borrowing profile may not be ideal for a bank lender, as long as your customers are creditworthy, you can leverage that to establish a factoring line and obtain funds from a Factor.

For example, you may be a start-up, hotshot delivery service, but your customer could be Baker Hughes who may take 40 plus days to pay your invoices! You may not be a good prospect for a bank loan, but you may be an ideal prospect for factoring! AND, here’s the wonder of factoring, you do not take on the burden of bank debt, nor do you dilute your equity. Yes, you incur an expense in the form of a discount fee, but the expense does not come out of your pocket upfront and should be viewed as a cost of doing business. The simple truth is that factoring allows you to fulfill your main goal of getting financing in a timely manner and enables you to take advantage of a growth opportunity that you otherwise would lose. The same line of reasoning works for generating cash to support your ongoing business operations. Like most businesses, the majority of your cash is tied up in receivables (open invoices). Regardless of whether your need for funds is for payroll or inventory or other critical operating cost, factoring is an ideal way to get funds to cover it.

Establishing a factoring relationship with a Factor should be relatively simple. Remember, the Factor is mainly concerned about the credit worthiness of your customer accounts. So, in comparison to the underwriting process that a commercial bank is obligated to undertake when considering a loan, relatively little or no emphasis is placed by a Factor on approving you for a factoring line. Generally, you are required to authorize the Factor to take a priority security interest in your receivables. In considering factoring, if you have inadvertently pledged your receivables to a bank in connection with a loan for inventory or equipment, then all that would be required would be that the bank release its security interest in the receivables.

I think what you will find most surprising is that factoring is highly endorsed by financial professionals, including banks. Business clients have many needs, and good advice, be it from lawyers, accountants or bankers, should be enlightening. The disclaimer offered by most is that Factoring is more costly than traditional bank financing. This is true due to the effort expended by the Factor to ensure the receivables are collectable. Although, factoring may be more expensive, it is generally considered a short-term (6 months to 2 years) funding solution for small businesses. Factoring essentially enables a business to grow and buy time until it qualifies for traditional bank financing. Traditional bank financing and private investment are the irreplaceable cornerstones of corporate finance. The challenge is getting to the point where you can truly benefit from their value. Regardless of business size, from small to large, factoring should be considered as an alternative to private investor funds and traditional bank financing.

June 10, 2014
Is Invoice Factoring right for your business?
In today’s economy, business owners are all too familiar with the struggle to find the necessary capital to meet their operating needs or to finance business growth. While traditional small business financing options (such as business loans and lines of credit) are increasingly difficult to attain, invoice factoring has significantly less stringent approval requirements. This is why many business owners, especially owners of small businesses and startups, turn to invoice factoring companies for a financing solution. Is invoice factoring right for your company?

Accounts Receivable Factoring Boosts Business Growth

What is Invoice Factoring?

Invoice Factoring (also known as accounts receivable factoring) is the selling of outstanding invoices (accounts receivable) at a discount to a factoring company that provides immediate cash to your business. Your business receives a percentage of the invoice value upfront (known as the factoring advance), and the factoring company will take care of collecting the invoices for you. The factor will refund your business the remaining balance once all your clients have paid (minus a small factoring fee known as the discount rate).

Usually, the value assigned to the receivables depends on their age (i.e., a more current invoice will be worth more). Generally, invoice factoring is also known as accounts receivable financing, accounts receivable factoring, or accounts receivable funding.

How Does Factoring Work?

With invoice factoring, you are selling control of your invoices (accounts receivable), either in part or in full. The process works as follows:
1. In the normal course of business, you provide goods or services to your customers.
2. Your company invoices your clients for the goods or services they receive.
3. A factoring company purchases your open invoices. Once the invoices are verified as valid, the factoring company pays you a percentage of the invoiced amount immediately. This percentage is typically between 80 and 90%.
4. Customer payments are made directly to the factoring company. When necessary, the factoring company will chase invoice payments.
5. Once the factor has received all the payments from your clients, they will pay you the remaining invoice value, minus a small fee known as the factoring fee.
The Benefits of Invoice Factoring

Immediate increase in working capital: Factoring releases the cash a business typically has tied up in accounts receivable and makes it available for paying expenses or for funding growth.

Predictable cash flow: Eliminate the burden of waiting for payments from customers. Instead of waiting 30-90 days, a business can factor in its unpaid invoices and get paid immediately.

No new debt: Since factoring is not a loan, it doesn’t appear on the balance sheet as debt, nor does it negatively affect your credit score. Instead, it appears as more cash and fewer accounts receivable.

Offer better credit terms: Offer customers better payment terms without creating business cash flow problems. Normally, when a business factors their customers’ invoices, they receive cash right away regardless of the terms granted to their clients.

Go after big accounts: Offer credit terms demanded by large, slow-paying corporations without depleting cash.

Take advantage of supplier early-pay discounts: Most vendors offer discounts for early payment. With the predictable cash flow provided by factoring, a business can take advantage of early-pay discounts, improve its credit rating, and offset the cost of factoring all at the same time.

Spend more time focusing on growth and less time managing receivables: Since factoring companies are experts in accounts receivable management, they provide the capability for business owners to spend less time managing receivables and more time managing their business. Small business invoice factoring services free up the time and capital you need to grow your business.

Back office support: The cost of factoring is bound to be a topic of discussion for any company owner looking to enter a factoring partnership. However, the benefits of factoring (such as back office support) easily make the accounts receivable factoring rate seem like a small price to pay. Businesses can reduce the overhead costs associated with managing accounts receivable and the processing of payments. These are services that are usually included with invoice factoring services.

As all business owners are acutely aware, an uninterrupted source of cash is the most vital element in the survival of a business. It shows where a company may be headed. Instead of hoping everything will work out, business owners can enhance their cash flow with Invoice Factoring. When cash flow becomes predictable and controllable, the business is better positioned for continued business success. In today’s lending environment, where traditional financing sources are continuing to fade, invoice factoring presents a welcome alternative.

Taking the plunge into invoice factoring could mean the difference between the successful growth of a business and remaining stagnant. You should first consider all your options, and then spend the extra time needed to examine the factoring companies you are considering working with. Carefully review contracts and work hard to negotiate discounts. In the end, using invoice factoring can provide immediate cash flow to meet your business needs.

If you think invoice factoring might be the right financing solution for your business, or if you have more questions before you take the leap, contact Charter Capital today to learn more about how we can help you.
August 5, 2013
Top 10 Reasons For Invoice Factoring
If you are looking for fast cash flow solutions for your business, factoring your accounts receivables (invoices) can provide you with the funding you need to succeed almost immediately. Invoice Factoring is a financial transaction and type of debtor finance in which a business sells its invoices to a third party (factoring company) at a discount. The factoring company will then collect on the unpaid invoices for you, and once all of your clients have paid, the factor will reimburse you the remaining balance (minus a small fee).

Many small companies enjoy the benefits of accounts receivable factoring, so we have compiled a list of the most important reasons to factor invoices.
1. It can turn your accounts receivable into immediate cash without giving up equity in your business.
2. The process is much faster than a conventional loan and is simpler.
3. Because your business receives funds up front, it enables you to offer better and more competitive credit terms to your customers.
4. By using the cash you receive from factoring your invoices, it enables your business to take advantage of early payment or volume discounts from your vendors.
5. It lets you concentrate on growing your own business instead of the Accounts Receivable and Collection process.
6. It helps you to begin to build and improve your credit because your business is able to pay its creditors within terms. You no longer need to wait on customer payments so that you can pay your bills. Partnering with the best factoring companies ensures you not only get fast cash flow but also the support needed to manage your business effectively and improve credit.
7. No new debt – Invoice Factoring is not a loan.
8. It helps to get invoices paid faster – Having a professional and experienced company assist you in managing your Accounts Receivable and collections usually shortens the days that invoices remain unpaid.
9. Monitoring and early detection of customer service issues – The factoring company can essentially be your outsourced A/R department and can alert you to any potential problems with your customers.
10. Receive invoice processing assistance, credit screening & monitoring, as well as professional collections.
If your cash flow is suffering and you are looking for a financing solution that will save you time and money while bringing about all of the above benefits, invoice factoring is for you.

Invoice Factoring for Business Growth: A Top Financial Strategy

Invoice factoring stands out as a top choice for business growth, offering a range of benefits that go beyond mere cash flow improvement. Invoice factoring empowers business owners to unlock the value of outstanding invoices, transforming them into a viable funding source that doesn’t require taking on new debt. Factoring for service providers, such as businesses in consulting, healthcare, and IT services, allows for a steady cash flow to manage business cash flow more effectively but also positions companies to grow their business by leveraging flexible funding solutions. For industries like staffing, where managing payroll is critical, staffing invoice factoring provides a reliable solution to ensure consistent cash flow and meet financial obligations without delays. Moreover, there are many advantages of invoice factoring, such as improved creditworthiness and access to working capital, that allow businesses to take advantage of early payment discounts and invest in business growth opportunities. This strategic move not only updates your choices for financing needs but also aids in maintaining a healthy cash flow, which is essential for new business ventures and established entities looking to scale. By choosing to factor your invoices, your company can navigate the complexities of traditional financing hurdles, update your financial strategy, and confidently secure a profitable future. To take the next step, request a free rate quote for your business.
April 3, 2013