When it comes to obtaining the necessary funds for your company’s growth, receivable factoring can be a game-changer. As a business owner, you understand that consistent cash flow is vital for operational expenses and seizing growth opportunities. That’s where invoices and accounts receivable play a crucial role.
However, slow-paying customers or skipped payments can disrupt your cash flow and hinder your business’s potential for expansion. Many entrepreneurs have had to turn down growth opportunities due to these challenges.
Enterprising business owners are always on the lookout for ways to foster business growth and ensure smooth cash flow. This is where receivable factoring comes in, allowing you to expedite your accounts receivable and stay on top of expenses and payroll. It’s important to note that invoice factoring differs from traditional bank borrowing.
Receivable factoring companies purchase your accounts receivable, eliminating the need for you to wait for payment from your customers. Instead, the factoring company assumes that responsibility. Typically, these companies advance around 85% to 90% of the invoice amount upfront. Once your customer pays, the factoring company disburses the remaining balance, deducting a small discount fee. This cash flow solution can empower you to take on larger customers without financial constraints.
Securing contracts from larger customers is often seen as a sign of success. However, such customers may demand extended payment terms. Combined with larger invoices, these delayed payments can strain your already tight cash flow. By partnering with a reputable receivable factoring company, you can confidently pursue larger customers without worrying about meeting payroll or covering expenses.
Moreover, working with a factoring company significantly reduces your credit exposure risk. These companies actively monitor your customers for signs of delayed payments. Their expertise helps guide business owners away from customers who consistently extend payment terms or take advantage of unearned discounts. This feature is particularly valuable for new businesses that would be severely impacted by a major customer failing to make full payment.
American Receivable offers these invaluable benefits to our clients. As a top-rated factoring company, we provide competitive rates, flexible factoring programs, and transparent pricing with no hidden fees or application charges. To benefit from our expertise, simply complete our streamlined application process, and our team of experts at American Receivable will be at your service.
Jack Stieber: jack@americanreceivable.com | 972-404-4726
Sarah Fisher: sarah@americanreceivable.com | 972-404-4726
Brad Gurney: brad@americanreceivable.com | 800-297-6652
Julie Adams: julie@americanreceivable.com | 800-297-6652
Dakota Stieber: dakota@americanreceivable.com | 512-339-5112
