Do you own a small business – and sometimes wonder how you’re going to pay all your bills? Do you wish you had enough cash to expand your operations with new staff or equipment, better technology, or more inventory? You’re not alone.
Take a moment to imagine, in a perfect world, what your business would look like if you were paid tomorrow on your whole stack of outstanding invoices. That scenario is possible when you choose to factor your invoices or accounts receivable.
A common problem for small business is having to wait 30, 60 or even 90 days for payment from clients, but they have their own expenses to pay. Payroll, taxes, equipment and raw materials are all financial obligations that can’t wait until invoices are processed according to client agreements.
Invoice factoring is an advance on funds that are already owed to you by your customers. Some small business owners might consider applying for a bank loan to receive cash in advance, but then the business would be incurring debt. Some might consider expensive marketplace loans, such as merchant cash advances, but these solutions also bring debt that must be repaid.
Factoring companies advance you no-debt funds for work you have completed, making them a popular resource for small businesses. Their low factoring fees and quick payment solutions also appeal to small business owners.
Here is a simple example of how factoring works.
Another benefit to small businesses is the support service offered by factoring companies. Whether you have been handling invoice preparation and collections yourself or have employed someone to do the job for you, you can relax and let the factoring company’s professional, experienced collections team take care of following up on customers’ payments.
Since 1993, Interstate Capital has partnered with many small businesses – and watched them grow. With low rates and high advances for improving your cash flow, a dedicated account manager and strong support services team working for you, and a commitment to helping you grow, Interstate Capital is ready to help you. Find out why invoice factoring is so popular among small businesses.
Contact Interstate Capital for an instant factoring rate quote today.