5 Hidden Benefits of Invoice Factoring

Invoice factoring gives you cash flow quickly, conveniently and is an exceptional alternative to traditional financing.

But did you know that factoring has additional benefits? When you partner with a factoring company to factor your invoices, it not only enables you to pay vendors and creditors quickly, but it also opens up a host of other advantages for your business. Here are five benefits that can boost your business in big ways:

Debt1 – Factoring improves cash flow and builds working capital quickly without incurring debt

Because it’s not a loan, factoring can help you access the funds you need fast, with minimum credit requirements. As a result, you can get working capital without impairing your credit, without incurring debt, or adversely impacting your credit rating.

In contrast, if you obtain a small business loan from a bank or other loan-based funding source, the debt will impact your credit score which can make it harder to get approved for a loan.

Credit Score2 – Factoring can potentially improve your credit

Because of the increased cash flow you have generated through factoring, you can potentially improve your credit and credit ranking.

By factoring your receivables, and having money available immediately, you are in a better position to pay on a timely basis other companies who have extended you credit. This practice helps you maintain good standing with your other creditors.

The solution to raising your personal and business credit score primarily comes down to paying your bills either on time or early and not tapping out your available credit. If you do these two things consistently, your ability to qualify for credit will expand. Doing these two things consistently depends on having dependable cash flow, which is the main benefit of accounts receivable factoring.

That consistent cash flow, provided by factoring, helps you pay your bills on time or early and use less of your available credit, which in turn improves your credit and raises your credit score.

credibility3 – Factoring improves your credibility

When you partner with an invoice factoring company like Interstate Capital, paying bills on time doesn’t just improve your credit — it also improves your credibility. Paying bills on time keeps you in good standing with the companies you rely on for goods and services that your business needs. If you fail to pay your bills on time, vendors and contractors may stop extending you credit or stop doing business with you completely.

Loss4 – Loss Mitigation

Interstate Capital’s Factoring program helps mitigate loss by offering Collections and Credit professional services as part of your program. This solution takes the burden of collecting unpaid invoices off of your back, so you can focus on running your business.

Saving5 – Money-Saving Programs

Interstate Capital extends several money-saving programs to its factoring customers, including Fuel Savings, Tire Discounts, ELDs and 24/7 roadside assistance.

Interstate Capital’s Fuel Card saves you 10 cents a gallon on diesel fuel at nearly 1,000 truck stops and service centers across the country.

With the Interstate Capital Tire Discount Program, you’ll save up to $40 per tire from most major brands, including Goodyear, Michelin and more.

The mandate for electronic logging devices (ELDs) is approaching and now you can save money at the same time with Interstate Capital’s discounts on top-rated FMCSA-compliant devices.

Another benefit of this national discount program is access to a 24/7 emergency roadside services line, giving you added safety and security on the road.

Through Interstate Capital’s partnerships with leading transportation services companies, you can also enjoy other savings opportunities including:

  • Discounts on maintenance costs such as oil changes
  • Up to $1,000 on new International trucks and $500 on used International trucks
  • Reduced prices on mobile phone plans
  • Savings on scanning, payroll services, and office costs
  • Discounts on motels and hotels

With invoice factoring, you can get a leading edge on growing your business without hurting your credit. It may even have a positive impact on your creditworthiness and raising your score. It can also help you establish a credible, trustworthy reputation in the marketplace — a pivotal part to any company’s growth. Finally, with the inclusion of worry-free loss mitigation and several free money-saving programs, factoring gives you “peace of mind services” that traditional lending solutions simply don’t offer.

Find out more about these benefits more from our trusted factoring experts today.