Invoice factoring companies can help your business do more than just get paid for your outstanding invoices. By partnering with an invoice factoring company, you get access to many tools that you wouldn’t get otherwise.
Why Partnering with An Invoice Factoring Company Can Help Drive Business
By partnering with an invoice factoring company, your business will start to notice a positive change in your business. An invoice factoring company can help drive business for your company for the following four reasons.
1. Manage Credit Risk With Non-Recourse Invoice Factoring
Running a business comes with various types of risk, one of the biggest being your credit. From the moment you start your business, you are constantly faced with expenses. Taking out a business loan can result in costly payments that can keep your business in debt for years.
Rather than seeking financing through a bank, and invoice factoring company can offer your business risk free financing with non-recourse invoice factoring. With non-recourse invoice factoring, an invoice factoring company purchases your outstanding invoices with a non-recourse agreement, which puts 100% of the liability on their shoulders in the case that your client fails to complete payment.
This is a major benefit for your business. Not only will you be able to have immediate access to the money owed to your business, but also keep your credit safe no matter the outcome.
2. Increase Operations
When you partner with an invoice factoring company, your source of working capital can triple practically overnight. With a strong source of working capital, your business will be able to increase operations tenfold.
For many, if not all businesses, the most important part of your day-to-day operations in your inventory. When you have more cash in your pocket, you can take advantages of bulk discounts that will help you stock up on important inventory and save hundreds.
3. Improve Cash Flow with Invoice Factoring
One of main things that will happen when you work with an invoice factoring company is that your cash flow problems will disappear. With invoice factoring, your business will be able to get up to 96% of the total of its outstanding invoices in just 24 hours or less. With this instant payment, your business will never have to wait for invoices to be paid and processed again, greatly improving your cash flow.
With increased cash flow, your business will be able to improve its overall credit, you can take on more jobs, start doing business in a new market, and much more.
4. Increase Clientele
With improved cash flow and a strong source of working capital, your business will be able to increase its clientele. With more money in your pocket, you are able to take on more clients than ever before, without having any financial qualms.
How To Get Started with Invoice Factoring
When you are ready to get started with invoice factoring services, an invoice factoring company will be able to advance you up to 96% of the total of your invoices in just 24 hours or less. The invoice factoring company will analyze your invoices and run a credit check on the client that holds the invoice with your business to ensure that they will complete payment of their invoices. With invoice factoring, your business will be able to have access to the funds owed without incurring any additional debt.