Do you want to improve your company’s cash flow? Then invoice factoring is something that you need to consider.
In the past, factoring accounts receivable was a financing option typically reserved for large companies. Today, factoring companies can provide customized factoring services tailored to small businesses and medium-sized businesses. For many of these businesses, turning invoices into immediate cash has become the preferred way to finance their businesses.
Why has factoring become so popular with smaller companies?
The economy has led to slower collection rates: Today, in an era of increased banking restrictions and decreased savings reserves, many small and medium companies struggle to keep up. Instead of endangering payroll or postponing key vendor payments, your company can continue with business as usual while the factoring company pays you upon delivery of your products, shipments, or services.
Small and medium-sized businesses need flexible financing alternatives: Unlike a fixed-limit bank loan or line of credit, factoring provides you with your most flexible funding options without incurring debt. When you factor your invoices, your funding can grow with your business.
Companies can make important purchases: Without a positive cash flow, you aren’t able to invest in critical equipment, vehicles, or other capital purchases that your company needs. With factoring, you can make sure your cash isn’t tied up in aging accounts receivable, an important concern for smaller businesses.
Find out how factoring can work for YOUR small to medium-sized company. Get an instant factoring quote today.