Benefits Of Using An Invoice Factoring Company
During the holidays your business mostly likely had its busiest time and was thriving. Yet, once the holidays slow down you may find that after that big boom of growth, you start to lose that cash flow you once had to manage all of your expenses.
As your company was pulled during the holidays to complete more orders, travel more places and hire more, etc., there most likely was a lot of your cash flow going out, but perhaps not as much coming in. You would think as much that you put out, the same should come in. But why isn’t this the case? Because of the invoices that are owed to you. Invoices can take 60 days or more to be paid back and this leaves you in a lurch. Starting the New Year out without a consistent cash flow can be detrimental to your business
So how can you start the New Year right? Take advantage of invoice factoring as a way to gain the funds you need so that you can make payroll, pay for equipment, expand, or otherwise. Without a cash flow, your business will be lacking the necessary means to succeed. Below are a few reasons why partnering with a factoring company in the New Year is one of the best financial decisions for your business.
1. Organization Is Key
When you decide to work with a factoring company, you can have a better-organized administrative team. If you want your team to have time to do make positive changes in your business rather than busy work, then a better cash flow can help improve your business plan, budget and more.
2. Go Green with Less Paperwork
If you are ready to go green, then having less paperwork is key. A way to accomplish this is to go online. With certain invoice factoring companies, you can use their services online and cut down your company’s time with the paperwork.
3. An Invoice Factoring Company Will Take On The Collections Responsibility
Another huge benefit of joining a factoring company to help get the cash flow you need is that they will take on the responsibility of the collections process. Once you sell your invoices to the factoring company they are then responsible to collect the amount owed which leaves your staff the ability to focus on more important tasks. With certain types of invoice factoring, your business can receive up to a 96% cash advance on the invoice.
4. An Invoice Factoring Company Provides Cash Right Away
One of the main reasons to partner with a factoring company is that the process is quick and easy. Not only will you receive your cash within 24 hours of being approved, but you can also be approved without good credit. This is because factoring isn’t based off of your business’ credit, rather the credit of the company or entity of your invoices. Not only will your business have the cash when you need it most, but it can also help strengthen your working capital, build good credit and help you expand more than you thought you could.