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How To Gain Financial Security with a Factoring Company

Why You Should Use An Invoice Factoring Company For Financing Your Business

Hundred dollar billsInvoice factoring is one of the best ways to finance a business that has many account receivables. Why? Because it is a quick, easy and secure way to gain the funds you need from all your current invoices that you are waiting on. When your clients wait for a month or more to pay back your invoices, it can put you in a financial bind. To avoid having to wait on these funds, invoice factoring makes it possible to get paid back right away

How An Invoice Factoring Company Can Help Your Business Succeed

Invoice factoring is available for a wide range of businesses. Essentially, any business that has account receivables can take advantage of factoring. A factoring company will purchase your invoices at up to 96 percent. They then take on the responsibility for collections. Once the factoring company is paid back from the client, they will reimburse you the rest, minus a small factoring fee. Below are just a few examples of the many industries that take advantage of the benefits that invoice factoring has to offer:

Benefits of Invoice Factoring

Take a look below at just a few ways that a factoring company can help support your business.

1. Quick, easy cash

If you get into a tough situation where you need cash fast, invoice factoring is the best way to get paid without putting yourself in debt. Bank loans can take a long time, so if you need a reliable, efficient way to manage your cash flow, invoice factoring is a fantastic solution.

2. Support growth

Are you ready to hire new employees, open a new location or move to a larger space? No matter the volume of your growth, it costs money to expand. If you can find a way to fund your expansion without getting a bank loan then you will be better off financially. With invoice factoring, you can acquire that consistent cash flow without the debt.

3. Have consistent cash flow for repairs or new equipment

Whether your business uses machinery, vehicles, technology, or another type of equipment, it is important to have the cash flow you need to make repairs or purchase new equipment. Without efficient or updated equipment, your business may suffer. To avoid debt, using your account receivables to fund those repairs or new purchases is a easy and beneficial solution.

4. Make payroll needs on time

With a growing company, payroll needs must be met on time. If you are waiting on invoices to be paid, this can become a burden. Rather than going in debt to pay your hardworking employees, using invoice factoring is often the most simple and wise decision.

We hope that these tips have helped you understand how invoice factoring through a well-established factoring company can be a huge benefit for your business. Factoring is widely used by numerous industries because of these benefits.

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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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