How Invoice Factoring Promotes Business Growth
Is your business ready for growth, but is struggling with a consistent cash flow? If finances are holding you back from expanding this can be a major burden. Yet, it doesn’t have to remain this way. If you’re looking for the best way to resolve this, invoice factoring is key.
Invoice factoring can be used by a wide range of industries from apparel, to manufacturing, to oil and gas, to technology, to transportation, to staffing, and much more. Essential, if your company uses accounts receivables financing, then you are most likely in the position to use factoring. Whether you are a business that is rapidly growing, a startup, or an established business that’s looking to improve cash flow or enhance your balance sheets, factoring is an optimal solution.
Today, we are going to look at several ways that invoice factoring can help benefit your business and enhance its potential to grow.
1. Improve your cash flow with invoice factoring
Cash flow is the lifeline of your business and is necessary for the majority of your operations. If you find that you’re cash flow is slow or inconsistent due to outstanding invoices, your business will greatly benefit from invoice factoring.
2. Make payments on time with invoice factoring
Without a consistent cash flow, you may experience difficulty have the funds to make unexpected payments or payroll on time. With invoice factoring you can get those fund you need to keep your business transactions on time.
3. Quick, easy and flexible financing
A significant benefit of invoice factoring for business owners is convenience. If you are in need of fast cash, factoring is the solution. The process is simple and quick. Unlike a bank loan that takes a long time for the approval process and puts your company in debt, factoring provides the cash you need without the debt. Because the factoring company buys your invoices, it isn’t a loan, but a cash advance. With non-recourse factoring, this advance (of up to 96%) is risk-free. Not only is this the best solution for a debt free transaction, but it is also
4. You can work your way out of debt and improve your credit rating
Another way invoice factoring can help your company grow is by giving it the opportunity to work its way out of debt or avoid getting into debt. Rather than taking on more loans, using your invoices to get the cash flow you need will help improve your credit.
5. Fund your next job with invoice factoring
When you have to turn down business because you don’t have the money, you are stifling your business’ growth. Yet, if you use invoice factoring to gain the funds you need, you can continue to expand and grow your business.
6. Hire more employees or move to a larger space
When you need to hire or move to a bigger space, having the funds to do so is essential. No matter the type of invoice factoring you choose, whether it be recourse factoring, non-recourse factoring, small business factoring, sport factoring or otherwise, it can help you get your company’s financial situation back on its feet, so that you can stay out of debt and continue to grow.