Could your company benefit from invoice factoring? Read these four tell-tale signs about how this type of business funding could work for you:
- You have a long list of slow-paying clients
It’s not uncommon to wait 30, 60 or 90 days for clients to pay, but this turnaround time can put a lot of pressure on your business. When you partner with a factoring company like Interstate Capital, we will advance you a large portion of your invoice within one or two days as soon as your paperwork has been approved. The process to set up an account with us is quick and painless and getting your invoices processed takes even less time.
- Your business is taking on debt to cover expenses
Not only do conventional bank loans take time due to the lengthy approval process, but it also means that you will be adding additional lines of debt to your business. Merchant cash advances may be fast and easy to get, but those fees and interest rates can be extremely high, cutting deep into a company’s operating expenses and any potential profit margin. Many companies think that incurring debt is commonplace in today’s market, but factoring companies provide a way around this unnecessary risk and burden. Factoring your invoices means that you won’t be incurring debt — plus you can use this upfront money to pay for everything from transportation costs and labor to suppliers and new equipment. Avoid debt by opting for invoice factoring instead.
- You have customers that require flexibility
If you have clients that have long payment cycles, then you should be able to give them this type of flexibility without affecting your bottom-line or cash flow. This means you can take on new clients and add a competitive edge to your business.
- Slow-paying clients are stopping you from growing
Instant access to cash means that you will have the funds you need to invest in your business. Whether you want to be able to negotiate discounted rates with suppliers or hire a new salesperson who will bring in more business, you will often need money to achieve these goals. Factoring companies can put you in the financial position you need to grow.
Since 1993, Interstate Capital has improved cash flow and facilitated expansion for thousands of companies of all sizes in a wide variety of industries throughout Northern America.
Contact us for a factoring rate quote today.