Asking a bank for a working capital loan is one way to give your company the additional cash it needs. However, the days of easy credit are over, and banks have tightened their lending standards. Many business owners are turning to alternative financial sources, like factoring. Invoice factoring is a good solution since it dramatically speeds up the companies’ cash flow.
Business owners sell their open invoices to the factoring company for cash, so they will have money for payroll and all their operating expenses. Factoring your invoices is a helpful option that’s available whenever there is a shortfall in cash flow.
How Does Factoring Work?
Working with a Best Factoring company is quick and easy. After filling out a short application and submitting a current accounts receivable aging the factoring company will be able to quickly qualify your company. After agreeing on terms, the business owner simply sells their invoice to their factoring company. Typically, the factoring company will advance 85% to 95% of the invoice, and then refund the balance, minus a small fee once the invoice has paid. A Best Factoring company will allow their client to choose which invoice they want to factor, and when they factor it. This keeps you the business owner in control of your factoring relationship.
Why Factor Your Invoices?
- Stay current on your payroll, taxes, and other operating expenses. Business owners are well familiar with the frustration of waiting for a customer to pay their invoice when payroll is just around the corner. Entrepreneurs have to divert their attention from completing new projects and try to collect on old invoices. By utilizing a Best Factoring company, the business owner now knows that they will always have the cash needed to run their business.
- You Won’t Go into Debt. With invoice factoring you’re selling your invoices to your factor for cash. The factor is repaid by your customers – this is not a loan you have to pay back.
- Service Fees are Lower. Compared to some bank loans and online lenders, a Best Factoring company will have no upfront fees, minimum monthly fees, renewal fees or upfront points.
- Purchase Inventory and Supplies. Business owners with cash flow problems face constant challenges to keeping enough inventory in stock. By taking advantage of a Best Factoring company business owner’s will be able to take advantage of buying in bulk and fast pay discounts.
- Save Time from Chasing Old Invoices. With the help of a Best Factoring company your customers will start paying their invoices in a timely fashion.
- Grow Your Company. Having a Best Factoring company on your team you know that you’ll have the financial resources necessary to take on bigger and more lucrative projects. Also, you will be able to offer your existing clients extended payment terms, growing your business even more.
It is Easy to Apply
Most banks require lengthy applications, many years of financial statements and tax returns. Working with a Best Factoring company means a streamlined, online application, no application or start-up fees, fast approval and a flexible factoring program that is customer friendly. Having 24/7 access to our client portal business owners stay up to date on the information they need to run their company.
Thirteen Years America’s Top Rated Factoring Company
American Receivable has a 5 Star Google Review and has maintained a Top Rated Factoring Company for 13 years in row. Find out how working with the Best Factoring company can put your company in the fast lane for success!