There are about 28 million small businesses in the United States. Many of those small businesses share similar concerns and struggles. Some of those small businesses are finding success overcoming their struggles with business factoring companies.
Business factoring companies can help to take some of the pressure off for small business owners. Sometimes referred to as invoice funding, or an invoice advance loan, these programs help small business owners make the most of their revenue.
Balancing the Books
It is always a challenge for small businesses to have enough money to cover the costs of doing business. Business factoring companies help by closing the gap between what is owed to you and what you have on the books.
Invoice funding helps to generate the capital that you need for day-to-day operations without having to tighten the terms on your invoices and push customers to pay on their invoices. For example, your customers all pay their invoices but sometimes it takes a little longer than you would like for the money to come in. In the meantime, you have overhead costs that need to be covered. Do you penalize customers for not paying their invoices early in the process and risk alienating them?
Invoice funding companies can provide you with a percentage of the value of your invoices to raise the capital you need now. This takes a lot of pressure off when you are trying to balance the books in your favor.
You Do Not Need a Reason
Let us say that you do not need the capital, but you would like to have it just in case. That is fine when it comes to getting approved by business factoring companies for invoice funding. Now, if you went to the bank for a loan, and could not provide a narrative of why and what you were going to use the money for, you would not get the loan.
One of the advantages of using your invoices as collateral for a loan is that you do not have to provide a reason. You are selling off your debt to a third party that will give you a percentage of the face value of the invoices, no one asks why you need the money.
Invoice funding companies provide easy terms, no long-term commitments, and capital without questions. It is a simple process.
Gives You an Advantage
Whether you need the capital or want to see it sitting there in the bank, knowing that your invoices can be turned into quick cash is a great feeling. If you find that you are turning customers away because you have too much money “on the books” but not in your account, factoring can fix that.
Having the advance business capital that you need will give you the advantage that you need to compete with confidence. Learn more about the process and how it can help.