Non-Recourse Invoice Factoring 101
If you haven’t heard this already, non-recourse factoring is one of the most popular types of invoice factoring. This is largely because it is a risk-free type of factoring that provides you with the cash flow you need without jeopardizing your credit.
Because many businesses experience trouble balancing their cash flow, they often need more resources and staff to help take care of the important tasks and responsibilities. Whether you need the money to hire, to make payroll, or to expand, having a consistent cash flow is crucial. Unfortunately, many businesses do not know how to achieve this. Rather than turning to a bank loan (which are hard to come by and take a long time) many business owners are using invoice factoring as the best solution to their financial problems. Below are three signs that your business needs to consider taking advantage of all the benefits that non-recourse factoring has to offer.
1. You’re Out of Supplies or Inventory
Whether you are a retail business, a hospital, or otherwise – if you are in need of certain supplies or inventory, a halt in your cash flow can become detrimental to your company. If there are slow seasons when you have to wait for extended periods of time for your invoices to be paid, then factoring can come in very useful. Waiting months for those invoices can be not only frustrating but stifles your company’s growth.
With non-recourse factoring, you can obtain the cash flow you need to purchase more inventory and stay on top of the demand. You can also take advantage of deals, special promotions and discounts this way. Don’t let the slow seasons hurt your business. If you want to be in control of your finances then using factoring to get that cash flow is worthwhile.
2. You Are Running Out of Cash Flow
The main reason why many business owners use non-recourse factoring is because they need a quick and easy way to obtain the cash flow they need. Loans are often hard to come by and take a long time to obtain. Yet, with invoice factoring, you can get an advance at up to 96% of the invoice within 24 hours.
3. You Are Overwhelmed
Startups have the problem of stretching themselves too thin. If you or your employees are trying to multiple jobs, the stress can be too much and may even cause you to lose efficiency and quality work. If you don’t want things to slip through the cracks, then you will need to hire more employees. When you use non-recourse factoring, you can gain the money you need to take on more employees to make sure that you are managing your time and resources successfully.
4. You Want to Expand
If you are ready to expand, but are in need of a consistent cash flow, then this is when invoice factoring comes into play. To grow, you must first, invest. Whether you need a new location, more products or more equipment, etc., then you will need a reliable cash flow. With non-recourse factoring you can meet your cash flow needs quickly and easily.