Wondering how your competitors are getting ahead? More likely than not, they are using invoice factoring to get paid instantly for their work.
What is invoice factoring? Invoice factoring is the process of partnering with a factoring company to get an up to 96% cash advance on outstanding invoices with low rates. This process takes no more than 24 hours and can help you get instant access to the funds owed to your business.
5 Ways Your Competitors Have Leveraged Invoice Factoring to Get Ahead
Your competitors are using invoice factoring to get paid faster, secure more capital, and grow larger than ever thought possible. There are endless benefits that businesses can receive from utilizing invoice factoring. Below are just a few of the ways that your competitors are using invoice factoring to excel in your industry.
1. They’re Freeing Up More Time
By utilizing invoice factoring, you competitors are able to free up more back office and administrative time. When you partner with an invoice factoring company, they take on the responsibility of collecting the remaining balance on the invoices you have factored with them. This frees up valuable time for your administrative team to focus on more pressing issues.
While the invoice factoring company is collecting payment from your clients, your business will have more time to seek out business opportunities, take on more customers, and cover other areas of demand with ease.
2. They Have Partnered with an Invoice Factoring Company for Instant Cash Flow
Rather than waiting the traditional 30 to 90 days to receive payment on invoices, you can get the funds in just as little as 24 hours by partnering with an invoice factoring company. When you partner with a factoring company, you can get practically instant access to the funds owed to your business.
They will review and approve your invoices promptly and advance you a percentage up to 96% with low rates based on the financial status of your clients. With other forms of financing, such as business loans, a bank or other lender will look into the financial history of your business—making it difficult for startups or businesses with poor credit. Once other lenders or banks have approved you, you can end up waiting up to 90 days to receive payment, putting your business into a deeper financial hole.
By partnering with an invoice factoring company, you can get immediate cash flow that will allow you to build a strong source of working capital for growth.
3. Your Competitors Can Attract Better Customers with Invoice Factoring
With your new strong source of capital, you will be able to attract a better clientele. Clients will be more likely to choose your business over others, as you are more likely to have the adequate funds to complete jobs on time and without financial complications.
Your new resources will allow you to make informed, calculated decisions about the clients you take on to ensure a more profitable future.
4. They’re Growing Faster Than Your Business
Invoice factoring will give your business the capacity and flexibility to help you grow at a faster pace than if it was funded by a loan. With prompt set up, simple application process, and fast funding, your business will have the resources it needs to grow larger and faster than before.
By partnering with an invoice factoring company, your business can get the resources it needs to take on larger clients, expand into new locations, strengthen staff, and more. With strong working capital, your business will have the resources it needs to keep up with immense growth.
5. They’re Bypassing Debt
Your competitors are using invoice factoring to completely bypass debt. By using invoice factoring, you are simply getting access to the funds owed to your business—not taking on a loan.
This allows you to avoid incurring additional to your business’s name, whiles still getting the right amount of financing for your needs.