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How Does Invoice Factoring Help SME Businesses?

Invoice factoring, also known as account receivable financing, is a widely used method of financing a business.  The invoice factoring business is now a $3 Trillion dollar industry worldwide!  This growth in invoice factoring has been fueled by economic expansion and the growing start up economy.

Hassle-Free Funding

The process of factoring invoices is simple and straight forward.  The business owner sells their outstanding account receivable to the factoring company for cash.  The business owner now has enough cash to make payroll and to complete their next project.  The factoring company will now wait for the invoice to be paid.  When the business owner needs more cash, they sell invoices to the factoring company again.

By having a reliable source of cash flow business owners are now able to pursue new customers and larger sales without worrying about how to fund a growing business.  Companies experiencing a rapid expansion will need additional working capital up front. Often while their customers are taking longer to pay their invoices.  This cash crunch can be crippling.  The SBA cites negative cash flow as a leading cause of business failing in their first 5 years.

A Reliable Source of Cash Flow

Account receivable financing is a fast way for business owners to solve their cash flow problem.  Factoring companies will often fund a new client in less than 5 days. A helpful article on invoice factoring can be found here.

American Receivable Corporation has helped business owners grow their business for 42 years.  Using our invoice factoring service business owners had the certainty of positive cash flow while receiving top rated service.  Let the experts at American Receivable Corporation help your business grow.