Don’t be fooled - banks are not the only places you can get business funding. Unfortunately, even successful businesses, at one time or another, have experienced cash flow problems.Ĭonventional wisdom dictates that you must borrow money to inject cash into a business. Let us introduce you to the convenience and security of invoice factoring.įactoring Companies help to offer relief for one of the main reasons businesses fail – poor cash flow. Our knowledgeable representatives understand the funding needs of small businesses and the problems they face. To learn more about accounts receivable factoring and how it can help you solve cash flow problems and deliver efficient business funding answers, call Charter Capital today. Instead of focusing on your business or personal credit score, the factoring company will perform credit checks on your clients to determine how likely they are to pay their outstanding invoices. One of the most attractive benefits of using an invoice factoring company instead of a traditional lender, especially for small businesses, is that your business can still be approved if you have poor credit. Invoice factoring is a great way to monitor customer service and detect problems early. This gives you more financial freedom to expand and grow your business, as well as the ability to take advantage of early payment rewards and discounts from vendors.
Your accounts payable problems are less stressful, and business funding is less of an issue. This means that you have the capital you need to achieve your goals. The factoring company will pay you cash immediately for your invoices. So, rather than spending your time and effort trying to collect on invoices, you can get paid for them today and devote more to focus on what’s really important – your business. The factoring company is now your accounts receivable department, available at a moment’s notice. Invoice factoring enables you to outsource your accounts receivable. Even better, you’ve nothing to repay later on. Instead, you simply submit an invoice and receive immediate cash in return. With invoice factoring, the factoring company doesn’t ask for any of those things. If the bank grants a loan, then you must make regular payments until the loan is repaid. With a bank loan, you must submit a business plan and tax statements, then wait for the bank to make a decision. Not only is invoice factoring a quick, convenient and effective business funding solution, it’s much easier and carries less risk than taking out a bank loan. Instead of an outstanding invoice and a cash flow problem, you have the funds you need to be successful and grow. You’re relieved of the burden and the waiting. The factoring company is now the one responsible for collecting what had been your invoices. You get immediate cash to fund your business, pay your employees, buy new equipment or supplies, or expand your firm. You get a percentage of their value upfront as a cash advance, and the remaining balance once all your clients have paid (minus a nominal factoring fee). So, how does invoice factoring work? Invoice factoring is a business funding solution whereby a factoring company, like Charter Capital, will “buy” your invoices and accounts receivable from you. You may have heard of the term but aren’t sure what it means. Well, you may not be able to get them to pay faster, but there is a way to get the money your slow-paying clients owe you in a quick, convenient, and effective way. How can you get your clients to pay faster so that you can increase your cash flow? This puts you in a bind and leaves you looking for an answer to how you can get your money faster. They may extend your invoice processing times by 45, 60, or even 90 days, instead of paying you promptly. A common business headache that affects cash flow is slow-paying customers halting your invoice processing procedures. These issues could be limiting your ability to fund and expand your business. Some of the best factoring companies also handle back-office processes like collections.Īs a small business owner, you may be facing cash flow problems. This financing service involves the factor purchasing your unpaid invoices and advancing you a percentage of their value upfront. What is a factoring company and what do they do? Invoice factoring is a form of funding that provides immediate cash to businesses by selling their accounts receivable.Īn invoice factoring company, sometimes referred to as a factoring firm or a factor, is the entity that provides invoice factoring services.
0 kommentar(er)
