No matter how great your product or service may be, insufficient cash flow can stop you in your tracks. Even if your customers don’t pay you for 30, 60, or even 90 days after you sent your invoice, you still have to meet payroll, pay rent, buy supplies, and keep up with other operating costs. Your business can’t wait!
For some companies, the gap between finishing a job and getting paid becomes insurmountable and they eventually must close their doors. If slow-paying customers are threatening your business, you can turn this around with factoring. It’s the easy, affordable funding solution that turns the unpaid invoices cash sitting in your accounts receivable into money in your pocket.
Here are four ways improved cash flow through factoring helps your business:
- Take on new work. Say “yes” to customers who require longer payment terms. When you know you’ll get paid upfront, you have the flexibility to take on work, regardless of payment schedules.
- Improve your credit score. When you have cash on hand, you can purchase in bulk for a discount. You can negotiate early-pay discounts that reward you for paying invoices before their due date. At the same time, your credit improves with each on-time payment.
- Invest in the future. With a steady cash flow that grows as your invoices grow, you can invest in more staff, new sales strategies, expanded facilities, or launch new products or programs that can translate into new markets.
- Save money on back-office work. The factoring company will help handle paperwork processing, credit checks of potential customers, and the challenging chore of collections. You can focus on what you do best: running and growing your company.
Interstate Capital has helped thousands of business owners move past the cash flow shortages that threatened to close their doors. Let Interstate’s factoring professionals show how factoring can help you get on the right track.