Juggling your company’s cash flow can be difficult in today’s credit-constrained economic environment. The challenge comes when clients take 30, 60 or even 90 days to pay their bills, but you have to pay employees, rent, taxes, and a host of other expenses without delay. It’s a stressful juggling act that can repeat itself month after month.
Are you ready for a whole new approach to improving your cash flow? This is the season for spring cleaning: for looking at what’s working and what’s not. Now is a great time to consider a “cash flow overhaul” that can ease your stress and get your business running smoothly.
In the past, businesses often turned to their local bank for cash flow solutions, but today’s international banking chains have increasingly tighter lending restrictions. Many companies don’t qualify and many owners don’t want to wait weeks to be approved. That’s why so many business owners turn to factoring.
If you’re facing cash-flow challenges, you can get money now for your invoices by selling them to a factoring company. This company will advance you a large portion of the invoice without holdback (generally up to 100%) after it has vetted the creditworthiness of your clients. After your client has paid the invoice according to their normal payment cycle, the factoring company pays you rest of the amount, minus a small factoring fee. You get paid on your invoices within one or two days after you submit your invoice.
If you are considering factoring, then it’s important to partner with a factoring company that understands your industry and offers competitive factoring rates. Look for a company with experienced factoring professionals who can help you take a hard look at your situation and provide a customized solution for you right away. It’s time for a cash flow overhaul!
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The friendly factoring experts at Interstate Capital, one of North America’s leading factoring companies, have been helping companies in a wide variety of industries improve their cash flow since 1993. Contact us for a complimentary cash flow assessment and factoring rate quote today.