Factoring can help your company grow faster while improving your profit margins at the same time!
In an effort to grow your company faster business owners need to turn their dollars over more often. By example many in the manufacturing industry may only have ample cash flow to turn their inventory over 6-8 times per year as they wait for their customers to pay. If they could increase that level to 10-12 times per year by using a factoring company funds they would not only increase their volume but ultimately their net profits. Having access to cash puts you in the driver seat.
Gain immediate Access To Cash
This process is not a loan, so it doesn’t appear on your balance sheet or affect your financial statement or equity interest in your company.
Many factoring companies may request that your factor all of your invoices while others are comfortable letting you choose the invoices from the customers you want to factor. This way you control your need for capital, keep your cost down, but also may sleep better knowing you have clear access to fund payroll, increase inventory, add staff, and take on new purchase orders and larger jobs.
Qualifying for factoring is simple – factors look to the creditworthiness of your paying customers. Tax Returns and financial statement are typically not required!
While a bank business loan is all about strong financials, profitability,time in business,and good business credit….while you may wait many frustrating weeks to qualify, invoice factoring focuses on your debtors credit, funds in a few days and demands very little paperwork.
Factoring could be a helpful tool for your business. It’s a great way to boost business growth and annual profits will helping your sleep better. Explore invoice factoring right now you may be glad you did.