In some instances, business partnerships don’t work out. There comes a time when certain partnerships need to end. As it may seem impossible to avoid a messy split between your business and your partner, there’s hope.
Using an Invoice Factoring Company To End a Business Partnership
We come across clients that are stuck in business partnerships that are bring down their individual company’s success. Rather than staying in a failing business relationship, you can start making efforts to get out amicably with the help of an invoice factoring company. How can an invoice factoring company help you end your business partnership? Here’s just a few of the many reasons an invoice factoring company can help make your split as simple and easy as possible.
1. Balance the Assets Between Partners
One of the most common factors in business partnerships is shared assets. If one partner has put in more assets than another, more issues tend to arise in during a split. No matter if you are the partner with less or more assets in the partnership, the imbalance is bound to cause unwanted tension throughout the split.
To help keep your partnership balanced and avoid these problems completely by using invoice factoring. An invoice factoring company will purchase your company’s outstanding invoices to advance you up to 96% of their total in just 24 hours or less with low rates. This gives you the opportunity to boost your cash flow as an alternative to giving away more of your assets to a bank.
The only asset you’ll have to give to the company is the invoice itself, taking away complications of using other forms of collateral from your business partnerships.
2. Make the Winning Bid with Invoice Factoring
When there are multiple businesses in a partnership, ending things can change a bit. When two partners want to end their business relationship, they go through a competitive bidding process. The two businesses that are looking to leave the partnership submit their highest bid to those looking to join the partnership. The business with the higher bid wins.
To boost the maximum of your bid, look to invoice factoring. With invoice factoring, you’ll be able to get a strong source of working capital for your business—fast. The invoice factoring company will advance up to 96% of your outstanding invoice amounts in just 24 hours or less. This not only results in consistent payment in the future, but also allows you to make the most effective bid for your company to win possession.
3. Fund Yourself Free from Previous Finance Agreements
With traditional forms of financing, business owners are asked to provide some form of combined assets to be granted funds. This makes the split a litte more complicated. Your business is not only trapped in a partnership with this other business, but also trapped in a long-term financial agreement.
To successfully be released from the finance that is secured against your assets, you can, again, turn to an invoice factoring company. Depending on your business’s current position, you may find that the total of your outstanding invoices will be enough to release you from your financial agreement. The invoice factoring company will give you practically instant access to these funds to ensure that you can get out of your failing partnership on top.