How Your Business Can Benefit From a Partnership with an Invoice Factoring Company
Are you looking to increase your cash flow without getting a business loan? Partnering with an invoice factoring company can be a great solution. An invoice factoring company can help your business get almost instant access to its working capital.
This is accomplished by selling your outstanding invoices. The invoice factoring company will purchase your invoices and advance you up to 96% of its total amount in just 24 hours or less. This is called invoice factoring. With invoice factoring, your business can experience the following benefits:
1. Fast Access To Cash
With invoice factoring, you are not taking on any additional debt. You are simply getting access to the funds owed to your business. Rather than signing a business loan and piling on more debt to your business name, you’ll get the cash owed to your business without the wait.
With traditional funding through a bank, you can wait anywhere from 30, 60, or even 90 days to receive funding. When you get financing through an invoice factoring company, you are simply getting access to your businesses own cash—fast. The factoring process takes around 24 hours, rather than months when you choose financing through a bank.
2. Flexible Terms
An invoice factoring company offers a wide variety of factoring services that cater to a different set of needs. With traditional invoice factoring, your business will work out a set amount of invoices that are to be factored.
There’s also a factoring service called spot factoring. This is a great service for small businesses. Rather than shying away from taking on large clients because of the hefty cost, you can use spot factoring to get paid quickly for your work to ensure that your cash flow does not suffer.
3. Stay In Control of Cash Flow
When you partner with an invoice factoring company, you’ll be able to increase and take better control of your cash flow.
Because you are getting practically instant payment for your work, you’ll never have to wait for your clients to pay off their invoices again. You’ll get paid faster and be able to secure a strong source of working capital. This will allow you to strengthen your cash flow and be able to grow larger than ever before.
4. Financing Without Debt
Getting financing through a bank allows for taking on additional debt. To get funds for your business, you have to borrow money. With invoice factoring, you’re not taking on additional funds, you’re simply getting access to your own funds. This allows your business to avoid incurring additional debt, and helps you take strides to pay off outstanding debt.
5. No Need For Collections
When you sell your outstanding invoices, the invoice factoring company takes on the task of collecting on the remaining balance of the invoice. They will treat your clients as their own and collect payment for your business.
This will free up time for your administrative team to start thinking about more important things than collecting on invoices.