One of the biggest challenges for small and medium sized companies is waiting 30 to 60 days to get paid by clients. Although most large companies can afford to wait, few small businesses can. Most owners try to fix this problem by pressing their clients to pay their invoices sooner. Although this may work sometimes, it’s really not a long term solution. Furthermore, you run the risk of alienating and losing clients.
Factoring Invoices – A Better Solution
A better solution to this problem is to use invoice factoring. Factoring financing provides you with an immediate advance for your invoices, enabling you to use the funds to cover important business expenses. The advance comes from the factoring company and can be used to cover business expenses such as rent, payroll and supplier payments. This stabilizes your cash flow enables you to focus on running your business rather than chasing payments.
Get a factoring quote – in seconds
Want to know the cost of factoring? Please fill out the factoring quote form and you will receive a pricing list in seconds. If you want to speak to a consultant directly, please call (866) 730 1922.
How does a factoring transaction work?
Factoring transactions are fairly straight forward and can be integrated into most companies. Most factoring companies structure transactions in the following way:
1. You deliver the work/product and invoice the client
2. You send the invoice to the factoring company – who gives you an advance
3. The transaction is settled once your client pays the invoice
What additional services can a factoring company provide?
Aside from providing financing, a factoring company can also help you with the following:
1. Credit analysis - Help you determine appropriate credit lines for clients
2. Receivable collection – Help follow up and get timely clients from clients
3. Financial reporting – Help determine volume and payment patterns for factored clients
Learn more about Invoice Factoring
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