In today’s economic environment, few business owners have the deep cash reserves needed to fund the operating costs of a growing machine shop. Many of these owners turn to machine shops factoring services to balance their financial needs.
Machine shops of all sizes – from a family-owned business started in a garage to a large automotive parts supplier – often face financing challenges. Timing is critical for balancing their expenses and revenues.
For starters, suppliers require prompt payment for delivering their metals and other materials. If the raw materials are not on the spot, customers will choose another machine shop that’s ready. In addition, leases and employees need to be paid on time. The challenge comes when their customers typically take 30, 60 or even 90 days to pay. The staff at Interstate Capital, one of North America’s leading invoice factoring companies, can help machine shops maintain a positive cash flow without incurring debt.
The Machine Shops Factoring Process is Simple
- You complete a job for a customer and submit your invoice to Interstate Capital.
- Interstate Capital sends you an advance up to 90% of the invoice amount, usually the same day, by ACH deposit, wire transfer, or check.
- Interstate Capital collects payment from your customer.
- You receive the balance of the invoice amount, minus a small factoring fee.
By factoring your invoice, you can continue running and growing your business while Interstate Capital waits for your customers to make payments. Not only will this ensure that you are able to pay staff and suppliers on time, but you also get to turn over the chore of collections to Interstate’s team of professionals. With your advance, you can keep your tools and machines in top-notch repair and upgrade your equipment as well. Machine shops factoring services are affordable, quick and worthwhile for machine shop owners.
Click here for an instant rate quote and learn how factoring can jump start your machine shop today.