A common concern that business owners have in choosing a company that factors receivables is client creditworthiness. Determining the creditworthiness of the clients ordering the products or services can be a major undertaking to handle. However, the good news is that the chosen factoring company typically performs customer credit reviews internally. This eliminates another responsibility and adds a bonus to the list of benefits of invoice factoring.
Factoring in 3 to 5 working days.
Get funding Same Day Once Setup
It is an organic line of credit that grows with the increase in your invoiced sales. You are never over-extending your company's finances, and you are allowing your company to grow at a natural pace.
Business owners realize that there is no need to borrow money from a bank in order to offer credit terms to customers. Factoring receivables is different to a receivable loan offered by a bank. It is considered an ongoing purchase of the invoices at a discount and not a loan. This enables the business owner to obtain immediate cash flow collateralized by the outstanding receivables without going through cumbersome paper work and waiting weeks for a decision.
Are you the owner or operator of a small business? If you are, you are most likely experiencing low levels of available working capital from time to time. Your company's regular supply of cash flow that is necessary for everyday operations may be difficult to predict or maintain. Especially in today's uncertain economies around the globe, many small business owners and entrepreneurs are finding it increasingly difficult to run successful enterprises, particularly with rising costs and high interest rates for repaying inventory costs, supply orders and bills. A professional factoring company that offers small business financing is most likely the very best solution to such monetary imbalances and deficits.