Benefits of invoice factoring

Benefits of Invoice Factoring

New and growing companies can benefit greatly from factoring. Many companies can’t qualify for traditional bank loans. Even if a company qualifies for a bank loan, factoring may be a much better option. (See Factoring vs. Bank Loan) Factoring provides you cash quickly, often in a matter of days. With factoring, you don’t have the overhead cost of an accounts receivable department. You also receive credit services that protect you from bad debt losses. Factoring lets you focus on your business operations, not the collection of receivables.

Provide operating capital:

  • Provide immediate cash flow
  • Finance working capital needs
  • Fund payroll and tax liabilities
  • Purchase inventory for increased sales
  • Receive trade discounts on payables
  • Receive instant cash for one or two major customers

Finance special business needs:

  • Companies with rapid sales growth
  • Companies with seasonal volume activity
  • Companies with a history of operating losses
  • Companies that are highly leveraged

Outsource credit and collections:

  • Outsource accounts receivable collections and accounting
  • Receive professional credit and collections services
  • Receive detailed reporting of collections and receivables

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