invoice factoring credit card

Invoice Factoring: A Wise Choice Over Credit Cards

Starting any business is always a capital intensive endeavor.  Many business owners are forced to use their own personal credit cards to supplement the cash they have raised to get their business running.  This strategy can be successful but can be very costly to both the company and the business owner.

There are many financing options available for well established businesses, such as term loans and business lines of credit.  An alternative form of financing that many business owners fail to consider is to factor their invoices.  Invoice factoring, also known as invoice financing, goes back to ancient Egypt and was crucial to financing trade during the revolutionary war. 

Invoice Factoring: A Safer Cash Flow Solution

One difficulty of financing your business with credit cards is that your cards will quickly max out.  The advantage of factoring your invoices is the factoring line will grow as your sales grow.  Factoring gives you the cash that is trapped in your accounts receivable without waiting for your customers to pay their invoices.  And all this happens without going into debt.

Traditional factoring is easier to qualify for since the factoring company focuses on your customers credit strength – not your personal credit score.  So, if you have already overextended your credit trying to keep your business afloat, factoring can be the perfect solution.

Aside from giving you the cash you need to make payroll and pay expenses, a traditional factoring company will also help your company manage your receivables and monitor your customers credit.  Having a dedicated team monitoring your outstanding invoices lifts that responsibility from your shoulders and lets trained professionals keep your accounts current.

For 43 years American Receivable has provided the money and expertise needed for our clients to grow and succeed.  Our online application is easy to fill out, we never ask for tax returns or personal financial statements.  Our flexible factoring program keeps you in charge of which invoices you decide to factor.  We have helped countless clients working out of their garage to prosper and even take their company public!  Our competitive price and high advance rate puts your staffing company on the road to success!   We have helped companies improve their cash flow with invoice factoring. It’s now your turn; call us today at 1-800-297-6652 or complete our quick application form.

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