Planning for and investing in your business’s long-term growth can pose a challenge because most decision makers tend to focus on what’s right in front of them. Technology investments can fall to the wayside. According to an article in Forbes.com, this is quite common for most businesses, after all, if your current systems are working “good enough” you may be tempted to focus on more pressing concerns.
Choose Factoring Invoices for One-time Technology Investments
Yet failing to take advantage of new technology could be costing your business a lot more than you might think, in terms of payroll, productivity, and profitability. When to upgrade can be a question that requires a lot of thought and research. But if it has been several years since your company’s had an IT overhaul, it is worth your while to take a look.
If you and your IT manager are talking about upgrading but aren’t sure how to fund this long-term investment, invoice factoring or account receivables factoring could be a great option. By using your existing invoices as collateral, you can work with a factoring company to secure a lump sum of cash to invest in a technology upgrade, whether that’s software licensing or leasing new equipment.
Upgrade Your Business’s Productivity with Invoice Factoring
Factoring invoices can be a great option for companies to secure cash needed for an unexpected expense or a sporadic investment. Unlike a traditional bank, an invoice factoring company values existing invoices and company standing more than it does credit scores. Technology business investments are a snug fit for factoring receivables because they are an infrequent purchase. Banks may require lengthy justification for this type of investment whereas account receivables factoring does not.
Depending on your company’s situation and the amount of funding you are seeking, invoice factoring generally pays you about 96% if the total value you are requesting. So if your company is investing in an automated tracking system that is looking to save the company 20% year over year, it is likely a move worth making.
Waiting until your company has enough money in the bank to cover technology upgrades could be costing you both in terms of pure dollar amounts and even more in productivity and loss time. So talk to factoring receivables specialist to see how an investment now in better technologies could save you for years to come.