Factoring written on notebook

Nine Key Reasons To Use Invoice Factoring

Cash flow management is crucial to the success of any business.  Maintaining a positive cash flow is especially challenging for companies that offer credit terms to their customers.  Invoice factoring offers a viable solution to businesses as it bridges the time it takes your customers to pay.

Here are nine reasons that more and more business owners are turning to invoice factoring to provide the cash flow they need to operate and grow their business.

  • Get on-the-spot Cash without going into Debt.  Contrary to a loan, or a line of credit, which is carried on your balance sheet, invoice factoring creates no debt since your customer is paying the factoring company. 
  • Your Customer Pays the Factoring Company.  Instead of having to make weekly or monthly payments on a loan or MCA, the money you receive from the factoring company is paid back when your customer pays your invoice. 
  • Propel Business Growth. For any company to grow it takes cash, and it can’t be tied up in receivables.  Factoring will help your business grow by:
  • Invoice factoring speeds up your cash flow, which will aid in the rapid growth of your business.  This is critical since over 80% of business failures is cash flow related. 
  • Invoice factoring allows you to offer extended payment terms to your customers.  This opens up opportunities to do business with larger customers who demand extended payment terms.
  • Stay current on payroll and with your suppliers.  Take advantage of quick pay discounts offered by your suppliers.
  • No Restriction to Growth.  Unlike a loan that is difficult, if not impossible to increase, invoice factoring grows with your business.  As you complete projects and bill your customers for larger projects your factoring company purchases that invoice, giving you the money you need to pay your employees and start your next project.
  • Ease of Application.  One of the reasons so many business owners turn to invoice factoring is the application process.  Traditional factoring companies generally require few documents from their prospects.  This keeps from wasting the business owner’s time chasing down documents and forms and allows the factoring company to respond quickly to their prospective clients.
  • Confidence to take on Bigger Projects. Taking on bigger projects or larger customers always involves more expenses and slower pay.  Invoice factoring solves these problems, giving entrepreneurs the assurance that they will have the cash needed to successfully grow their business.
  • Reduce the Risk of Late Payments and Non-Payment.  Slow paying customers strangle a company’s cash flow, and a customer who refuses to pay their bill can ruin a company.  Invoice factoring companies will use multiple credit reporting agencies to make sure their clients are doing business with businesses that pay their invoices in a timely manner.
  • Invoice Factoring is Affordable.  By using the service of a Top Rated Factoring Company you are assured of receiving a competitive rate and transparent pricing.  You will never pay an application fee, a due diligence or documentation fee. With the immediate cash flow from factoring their invoices business owners can now take advantage of fast paying discounts offered by their suppliers. 
  • Improves your Companies Credit Score.  Business owners that use factoring companies will see their companies credit score improve as they will have the consistent cash flow to promptly pay their bills, giving them access to credit terms from their suppliers.

Business owners in Austin, Dallas and throughout the country are calling on American Receivable to deliver the factoring services they need.  Companies in start-up, growth or the revamp phases have found American Receivable delivers on it’s 5 Star Google rating

jack@americanreceivable.com                          972-404-4726

brad@americanreceivable.com                         800-297-6652

dakota@americanreceivable.com                    512-339-5112

Voted best Invoice Factoring Company for SMBs for 2022 by Business.com

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