Unlocking Financial Agility: How Invoice Factoring is Revolutionizing Small Business Finance

More small business owners are turning to invoice factoring to cope with economic challenges, a new report shows.

January 30, 2024, Houston, Texas—Leading invoice funding company Charter Capital says invoice factoring is a key strategy among small business owners coping with some of the most significant economic challenges today. Additional coverage of the topic can be found in “Our 7 Favorite Things About Factoring,” now live on charcap.com.

The report draws on JP Morgan research, which indicates one in four small businesses has just a 13-day cash reserve. With such a small cushion, it doesn’t take much more than a single late payment from a client or unexpected expense to upend plans for even the most meticulous budgeter.

“Invoice factoring pays out quicker than most funding options,” explains Joel Rosenthal, Co-founder and Executive Manager at Charter Capital. “This makes it ideal for businesses that need to cover critical expenses and don’t have time to wait.”

He says invoice factoring is unique because it quickly turns unpaid B2B invoices into cash. While this usually means cash reaches the business’s account within a couple of business days, Rosenthal says interest in Charter Capital’s same-day funding options has surged due to the current economic climate.

He notes that the ability to obtain funding without taking on debt also appeals to small business owners. This aligns with data from the latest Small Business Credit Survey, which indicates that one in three small businesses is having trouble making payments on debt.

“The high interest rates seen today are making more small businesses debt-averse,” Rosenthal continues. “They’re funneling everything they have into paying down debts, especially those with variable APRs that have become much more challenging to pay off. Being able to obtain funding without adding to that burden is a huge relief.”

Rosenthal adds that factoring is also flexible, which means businesses can tap into funding as needed. This enables businesses to fill working capital gaps as they emerge and accept orders they might have otherwise turned down due to cash outlay requirements. Because of this, factoring is quickly becoming part of many business growth strategies, too.

Those interested in learning more about invoice factoring or who would like to request a complimentary quote may do so by calling 1-855-751-7937 or visiting charcap.com.

About Charter Capital

Headquartered in Houston, Texas, Charter Capital has been a leading provider of flexible funding solutions for the B2B sector for more than 20 years. Competitive rates, a fast approval process, and same-day funding help businesses across various industries secure the working capital necessary to manage daily needs and grow. To learn more, visit charcap.com or call 1-855-751-7937.

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