During the holiday season, your business is booming. You are taking on more and more clients that require more work from you and your team. All of this business is great for growth, but can take a toll on your cash flow.
As you are stretched to fulfill more orders, see more clients, and be more places, your business sees a lot of cash leaving, but not a lot coming in. This is due to the invoice based nature of your business.
With invoices, you can wait up to 30 days to receive payment on your invoices, which kills your cash flow. When you have more money going out than coming in, it makes the busy times nearly impossible.
Benefits of Partnering with an Invoice Factoring Company
Rather than letting the busy holiday season take over your business, let an invoice factoring company help you better manage your invoices. With their help, you can get paid immediately for your work—without the risk. We have outlined some ways that a factoring company can help your business get paid faster and better manage invoices.
An Invoice Factoring Company Takes on Collections
Not to be mistaken as a debt collection agency, a factoring company will take on the task of collecting payment from your unpaid invoices. When a factoring company purchases your outstanding invoices, not only do they advance you up to 96% of the total amount, but they also take on the process of collecting payments from your clients.
In some cases, there are invoice factoring companies that offer non-recourse invoice factoring that puts 100% of the liability of repayment on the advance on the shoulders of the invoice factoring company. This means that if your client fails or neglects to make payment on their invoice with your business, the factoring company eats the charges—keeping your credit and your capital safe.
With some invoice factoring companies, like ours, we offer online services that make it easy for your business to cut down time and cut down the amount of paperwork. We allow our client to submit their invoices online rather than printing, faxing, and handling endless amounts of paperwork.
With this, your business can save much needed time and space that has previously been filled with paperwork.
When you allow an invoice factoring company to factoring your invoices, your administrative team can be better organized. A more organized business has the power to have a better outlook on overall cash flow. This will allow your team to step away from the nuisances of busy work and be able to make positive changes to your overall business plan, budget, and more.
Invoice Factoring Gives You Instant Access to the Cash Owed to Your Business
One of the biggest benefits of working with an invoice factoring company is getting instant access to the money owed to your business. An invoice factoring company will be able to step in and purchase your outstanding invoices to give you an advance of up to 96% in just 24 hours or less.
This completely eliminates the wait time between job completion and payment, allowing your business to increase cash flow, strength working capital, and grow larger than ever before.