While many people recognize that factoring can get them cash for their unpaid invoices fast, a factoring company can actually help you with a variety of your business needs. Here’s a quick look at some of the value-added services factoring companies offer.
1) Collecting Payments
Factoring is not a loan. When you work with a factoring company, you’re literally selling your unpaid invoices to them. Your factoring company gives you cash for the invoices promptly, then takes care of invoicing and collecting payments from your clients.
2) Credit-Checking Your Clients
Most business owners have been impacted by a non-paying client. While larger companies are better poised to absorb the impact of an unpaid bill, a single instance can bring operations to a screeching halt for small and midsize businesses. Performing diligence checks before starting work or delivering goods minimizes the risk of non-payment. However, few business owners have the bandwidth to carry out these types of diligence checks. A factoring company will typically take care of this for you.
3) Putting Cash Flow Data at Your Fingertips
Knowing your numbers is the keystone in successful fiscal management. When you know what’s coming in, and when it’s coming in, you can make smart decisions about what to spend and identify trends, so you’re prepared for seasonal lulls. Having cash flow data readily available is essential when applying for loans or seeking outside investment, too. Invoice factoring companies can provide you with statements and present it in an orderly manner. If you work with an invoice factoring company like Interstate Capital, you’ll have access to financial reports online 24/7.
4) Empowering You to Accept More Work
It’s easy to assume that accepting additional work is a given, but many small and midsize companies meet work requests with fear or trepidation.
Does the customer have the ability to pay for more work?
Can I afford to cover the costs of accepting additional work?
If you’ve ever asked yourself these questions, or turned down fulfilling a customer request because you couldn’t afford the labor, materials or equipment, you’re not alone. Factoring addresses these concerns in two big ways: First, it shortens the span from work to payment, so there’s more working capital to draw upon. Secondly, companies like Interstate Capital supply you with the information gathered via diligence checks, so you always know how much work your clients can afford.
5) Connecting You with Professional Services
Although not every factoring company is quite so comprehensive, Interstate Capital is here to support your growth in its entirety. Are you a motor carrier who wants to run more loads or a freight broker or shipper who needs to locate a truck? Our free load board will get you connected. Or, maybe you need a tax specialist, bookkeeper, payroll help, licensing specialist, or logistics assistance. If so, talk to your Interstate Capital account manager to find out which of our referral partners are best-suited to your needs.
Get Started with a Free Cash Flow Consultation
Interstate Capital can help you with many of your business challenges, but our premier service is invoice factoring—getting you paid for your invoices quickly and improving your cash flow. To find out how invoice factoring can improve your business operations, start with a free cash flow consultation.