The Ultimate Solution for Your Cash Flow Challenges
Regardless of the size of your business, having a reliable cash flow is essential. Without it, your business encounters a wide range of challenges that stand in the way of growth—you can’t purchase necessary supplies or inventory, you have trouble meeting payroll, you’re late reimbursing suppliers, and your business credit may be negatively impacted.
Clearly, it’s not possible to successfully operate a business if day-to-day operational expenses aren’t being met or are hampered by a lack of liquidity. Without adequate cash flow, there aren’t enough funds funds available to hire staff, lease new facilities or equipment or venture into new markets or territories.
The solution is small business invoice factoring
That’s why so many companies today opt for small business invoice factoring as the way to regularly infuse cash into their businesses.
This option is available as a one-time solution, but businesses with recurring customers often choose a “set-it-and-forget-it” arrangement with an invoice factoring company like Business Factors & Finance, because they know the money they need will be there every month. Businesses are assured their daily operational costs are covered, so they can more efficiently leverage their investments. In other words, they devote their time to planning and execution, rather than worrying about where the money will come from to support their growth objectives.
How small business invoice factoring works
You contact Business Factors & Finance and tell our representative you need financing for your business. Whatever the reason—inadequate cash flow, issues related to unforeseen rapid growth, falling behind in paying your own invoices—our factoring service is not a business plan-dependent financial service.
You complete an application (usually this takes under an hour), providing verifiable information about your company, as well as copies of those invoices you wish to factor. Whenever possible, it’s best to choose the largest, most recent invoices from your most reliable and creditworthy clients.
Business Factors & Finance will run a credit check on your customer, not on your business. This is a key differentiator between receivables factoring and applying for a traditional bank loan. Our focus is on the good standing and credit worthiness of your customers, not on your business.
Following our verification and due diligence process, if your customer is deemed creditworthy, we begin the immediate process of purchasing those invoices (receivables) and paying you the bulk of the value of each invoice (between 80-96%) within 48 hours.
You take this money and use it however you wish. Business Factors doesn’t review or monitor the way you choose to spend your money.
In the meantime, your credit-worthy customer pays its bills on time to Business Factors, which then remits you the remainder. We take a percentage for handling and expediting the invoice collection process and charge a fee for each invoice processed.
If for some reason your customer doesn’t pay on time, we follow up as a collections agent. If over time, the customer still hasn’t paid, we take on this bad debt, not you. This is known as non-recourse factoring, in that we own and are responsible for the invoice in its entirety.
Invoice factoring vs. a business loan
Traditionally, small businesses in need of a cash infusion turn to banks for a business loan. But the bar set by banks for a business or capital loan may sometimes appear unreasonably high. These include the need to fill out complicated forms and, in many cases, a requirement to submit a comprehensive business plan.
Financing in the form of a business loan also includes allowing a bank or other lender to look into your company’s financial history—a significant obstacle for startups or businesses with poor credit. Complicating matters further, if and when your request for a loan has been approved by lenders or banks, you may still wait up to 90 days to receive payment.
With small business invoice factoring, there are no monthly repayments, no need to put down collateral, and no obligation to complete extensive, time-consuming paperwork. Small business invoice factoring depends on the strength of your customers’ credit scores, rather than your own credit history—so no credit check of your business is involved. If you’re a small business with creditworthy customers and high-dollar-worth invoices, you’re a great candidate for fair-priced and rapid invoice factoring.
A closer look at the benefits of small business invoice factoring
Not only is the process easy and “user-friendly,” these additional benefits may apply to your current business situation:
Handle invoices large and small. Unlike other small business factoring companies, Business Factors can handle invoice amounts of as little as $2,000. In fact, we cater to factoring small business invoices for companies with under $10,000 in open invoices.
Immediately receive up to 96% of the funds owed to you. Business Factors reimburses up to 96% of the face amount of your invoices in cash. We assume responsibility for collecting the invoice and taking on 100% of the credit risk. You pay no upfront fees, get simple credit qualifications and enjoy friendly, professional and confidential consulting.
The lowest rates and fastest turnaround. With our small business factoring program, there’s no hassles and no personal collateral required. By supporting you now, Business Factors helps you plan ahead and secure the future growth of your business.
What you need to get started
Some paperwork is involved in the invoice factoring application process, but it’s far simpler than anything required by a bank or another conventional loaner. Documents include:
- Accounts receivables/payable aging report. This report outlines your current and most recent invoices, generally going back 90 days. This enables Business Factors to identify and verify your customers, the amount of money they owe and their level of creditworthiness. If these customers have a solid history of paying their bills on time, you should be good to go. Together with this report, you may be asked to submit a sample invoice so we can ensure there is no problem with their layout, design, readability, etc.
- Articles of organization or incorporation. Your company’s identifying documents are needed so we can verify that your business is set up legitimately and filed with the appropriate governmental and regulatory agencies.
- Completed invoice factoring application. Filling out this form is a necessary part of the process, but our accounts receivables specialists are available to help in every way. Feel free to ask them any questions, particularly if you’re new to the factoring process.
Other documents may be requested, depending on state, local laws and company requirements. As always, Business Factors will guide you through the process, paving the way for you to receive the cash you need to keep growing your business.
Why choose us?
Established in 1999, Business Factors & Finance is run by two of the most reputable companies in the factoring industry — with experience going back well over 40 years. At Business Factors & Finance, we factor an annual average of $900 million.
Business Factors & Finance was built to provide local, personal financial services that meet the specific needs of small-to-medium sized businesses, all across the U.S. and Canada.
At BusinessFactors.com, our professional representatives:
- Support the needs of small businesses, helping them obtain the funds needed to operate effectively and grow their companies
- Provide the highest degree of quality, confidentiality and personalized service
- Listen closely to and care about the needs of the businesses we serve
At BusinessFactors.com, our job is to provide the most inventive financial solutions for small-to-medium sized businesses. We pride ourselves on being innovative, flexible, and passionate about what we do.