In today’s competitive economy, service providers of all kinds and all sizes are increasingly enlisting the help of service business factoring companies to help them with their needs for working capital. Whether a company provides professional consulting services or provides janitorial services, service providers can struggle during the gap between completing a job and getting paid for it. Even when you have a large sales pipeline and booked jobs, you might find it hard to make payroll and other monthly payments when you’re waiting 30, 60, or even 90 days for customers to pay. This is when a factoring company can speed up your cash flow.
Service business factoring companies can purchase your invoices and pay you a large portion of their value upfront. When you convert the funds sitting in your accounts payable stack into cash in your pocket, you get the money you need for operating expenses without waiting weeks or months for your customers to pay you.
One challenge that service providers face in seeking working capital is that they may not have valuable assets outside of their accounts receivable. This lack of collateral can make it difficult for service businesses to obtain traditional bank financing. While considered “tangible” from an accounting standpoint, outstanding invoices typically have value only to the owner of the accounts. Banks prefer to lend against hard assets that can be seen.. In addition, some service providers, especially new start-ups, may not have a long credit history or a strong credit score. That can also become an obstacle for traditional loans and lines of credit.
Factoring companies that work with service providers recognize the value in a company’s accounts receivable. Unlike banks, invoice factoring companies don’t evaluate applicants based on collateral, such as inventory, equipment, or real estate. Service business factoring companies also do not judge potential clients based on their credit background. Instead, the factoring specialists look at the creditworthiness of a potential client’s customers.
For these reasons, service businesses have been turning to factoring companies like Interstate Capital, an industry leader since 1993. At Interstate Capital, clients benefit from time-saving and money-saving features, including the business advantage of same-day funding when a job is completed. Not only does this ensure that you can continue with your normal day-to-day business without worrying about outstanding payments, but you can focus on growing your company and taking on more customers, including those requiring long payment cycles.
As the services industry grows across North America, so have the number of factoring companies for service providers. Business owners can now compare services and choose the service business factoring company that best suits their needs.
Why so many service companies choose Interstate Capital
- Factoring specialists who know your industry and understand your business model
- Dedicated account manager ready to partner with your company for success today and growth in the future
- Free collections services by expert team that treats your customers with courtesy and professionalism
- Free same-day funding with free direct deposit after invoice review
- Free wire transfer each week
- Free credit checks on potential customers
- 24/7 online customer portal for staying on top of payments in real time
- Reasonable rates for a no-debt, no-loan cash flow solution
- The ability to improve your credit score while taking advantage of early payment and volume discounts
Applying for factoring from Interstate Capital takes only a few moments and your application can be expedited to get you your first infusion of cash in a day or two. After the first funding, factoring your accounts receivable requires 24 hours or less.
Contact Interstate Capital for your no-obligation factoring quote.