In a competitive marketplace, it pays to take steps to ensure you stay ahead all year long in terms of your marketing and sales efforts. As a small or medium-sized business owner, however, this is often an ongoing battle for deciding where the money will come from. Managing inconsistent cash flow and running your own collections agency out of your accounting department is no way to manage a business, and it’s something that can quickly slow down your sales and marketing efforts. Professional invoice factoring services is one solution that can work for many different types of businesses, and it’s an option that has no risk to the business owner and that doesn’t require a squeaky-clean credit record either.
Get access to your funds even before you get paid
When you utilize invoice factoring, you are accessing funds that the business has already earned. It’s not a loan, where you take out cash that is based on actual money that you haven’t earned yet. Instead, you are simply getting the money from your invoices faster by selling them to a third party factoring company. It makes sense when you think about how easily you can turn your profits back into the business in order to further develop and grow. You don’t have to wait a month or even three months before your invoices are paid and you’ve received payment. Using invoice-factoring means you get the money you’ve made now, allowing you to replenish your store’s inventory, pay off bills to suppliers and keep up with payroll obligations all year long.
We don’t look at your credit, we focus on your customers
It’s so common for a small business owner to have a financial problem here or there that has adversely affected their credit report that many don’t even try to apply for a bank loan because they know they will just be rejected. Luckily, invoice factoring doesn’t even look at the business owner’s credit, instead of focusing on your customers, since they will be responsible for paying your invoices. That’s a big win for many small business owners and is the reason why factoring has become so popular in recent years.