The new year is in full swing! Your business has a new lease on life and is ready to tackle any obstacle that comes in the way of success. To keep your new, positive outlook on your business’s success in the new year, it is important that your finances are in check.
Why Your Business Should Use Invoice Factoring in the New Year
In order to meet all the goals you have accounted for in your business plan, you need to have strong finances. Unfortunately, without strong finances, your business will have a hard time meeting its goals. Thankfully, there’s a way to not only increase your business’s financial status, but also grow it larger than ever thought possible.
1. Increased Cash Flow By Factoring Invoices
When you use invoice factoring, your business is getting access to its working capital practically in an instant. Invoice factoring is the process of selling your business’s outstanding invoices for up to a 96% cash advance in just 24 hours or less.
With invoice factoring, your business will never have to wait for clients to process and pay invoices to get paid. Working with an invoice factoring company will allow you to get paid faster so that your cash flow doesn’t suffer.
In most cases, our clients come to us when their cash flow is already extremely low. With invoice factoring, you can not only increase your cash flow to stable levels, but also keep it growing to make it stronger than ever before.
2. Stay Afloat During Slow Periods with Invoice Factoring
In most businesses, no matter the industry, there comes a point in the year when business slows down. For some businesses, summers are booming, while in others, summer is the slowest time of the year.
When business slows down, so does your cash flow. Without immediate payment from your current customers, completing everyday tasks, taking on new clients, and paying hard working employees can be nearly impossible.
When you use invoice factoring, you’ll be able to combat the common cash flow issues that you come across during slow times. You’ll be able to get paid instantly for your hard work. This will allow you to keep your cash flow steady to ensure that your business will run efficiently and smoothly throughout the entire year.
3. Improved Customer Experience & Customer Service
Not having cash on hand is a business owner’s worst nightmare. As mentioned before, without cash on hand, you don’t have the ability to carry out and complete everyday tasks. This can hurt your business in many ways.
Not only will your operations slow down, but your business’s reputation is at stake. When you are strapped for cash, your customer service can suffer.
You have less time to spend with customers, and less resources to expand your clientele. Without cash, your current orders or jobs will be placed on hold until there are sufficient resources to carry on again.
By using invoice factoring, you won’t have to worry about collection. Because the invoice factoring company purchases your invoices, they will take on the task of collecting payment. This will allow you to get back to spending time with your customers to improve their experience with your business.