How a Factoring Company Can Help Your Small Business Grow

Are you looking to grow your business? Many small businesses are looking to take the small out of their name and join the industry leaders—but how do you take that leap?

Smiling Business Owners Relieved After Invoice FactoringIn order to be able to even consider taking that leap, your business needs to have cash in its pocket. Having access to a secure source of working capital, anything can be possible for your business—including major growth. One thing that many small businesses don’t have is access to their profits.

In most cases, small B2B businesses are waiting for their clients to make payments or complete payments on their invoices. This can take up to a month to get. A month is a very long time to wait—especially with large orders. The longer it takes for your clients to pay off their invoices, the longer it takes for your business to build up capital. How can you combat this issue, so you can start growing? Partner with an invoice factoring company.

PARTNERING WITH AN INVOICE FACTORING COMPANY FOR FASTER GROWTH

What is an invoice factoring company? This is an alternate financing business that purchases your outstanding invoices and advances you a percentage of the funds for a fee. An invoice factoring company can help you get practically instant access to the funds owed to your business. A partnership with an invoice factoring company can help your business in countless ways, including:

Strengthening Cash Flow with Invoice Factoring

As a B2B business owner, you’re always waiting for your clients to pay off their invoices with your company. The longer it takes for your clients to pay your business, the more your cash flow suffers. With poor cash flow, your business won’t have the funds to complete everyday tasks, operations, payroll, and more.

An invoice factoring company, as mentioned previously, will purchase your outstanding invoices and advance you a percentage of the funds for a small fee using invoice factoring. There are many types of factoring, but this is the most common factoring service.  They will advance you the fees just 24 hours after they have been submitted, allowing you to have almost instant access to the funds owed to your business.

This will allow your business to not only repair damaged cash flow, but build it larger than ever before to start tackling bigger obstacles to get your business in line with industry leaders.

Building Business Credit with Non-Recourse Invoice Factoring

Another form of invoice factoring that a factoring company typically offers is non-recourse invoice factoring. With non-recourse factoring, your business can get instant payment—without the risk.

Just like with invoice factoring, the invoice factoring company will purchase your outstanding invoices to advance you up to 96% of its total in just 24 hours or less. With non-recourse invoice factoring, the company will purchase your invoices with a non-recourse agreement—meaning that if the client that is attached to the factored invoice fails to complete payment, the invoice factoring company will eat the charges.

This is a major benefit for small businesses. Building credit in the beginning stages of a business is a very difficult task, especially when clients do not complete payments on time. non-recourse invoice factoring allows you to get the funds owed to your business without the risk of losing them.

You will have the opportunity to build stronger credit for future lending opportunities with a bank that will allow your business to grow and expand its operations.

TAKING YOUR BUSINESS TO THE NEXT LEVEL BY PARTNERING WITH AN INVOICE FACTORING COMPANY

These are just a few of the endless benefits that come with partnering with an invoice factoring company. You can start tapping into your full potential as a business and a business owner and grow your business larger than ever before by factoring your invoices for instant access to your capital.

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About the Author:

Robert Bernfeld started in the commercial finance industry in 1974. His early years included positions with Aetna Business Credit and Foothill Group. During the next thirty five years. Mr. Bernfeld established both equipment leasing and accounts receivable factoring companies. He partnered in founding Business Facilitators, Inc. in 1999. Mr Bernfeld graduated from the University of California, Riverside in 1974 and received his Juris Doctorate from Loyola University School of Law in 1977.

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