If you deliver goods or services on schedule, but don’t get paid for weeks, how can you keep up with your day-to-day expenses? Do you have a payroll to meet each week, office costs every month, and insurance, taxes, and other overhead expenses? When you factor your invoices, you don’t need to wait 30, 60, or even 90 days for your clients to pay you. You can be paid in advance on those invoices and use that cash for operating expenses – and have the cushion to grow your business.
Here are a few benefits of factoring your accounts receivable:
Free up your time
Managing a business is time-consuming, without having the additional burden of collecting on your outstanding invoices. When you partner with a factoring company, you let them handle your collections and post your payments for you. This will give you time to focus on growing your business and taking it to the next level.
Improve your financial planning
Cash in the bank lets you take on larger clients, get cash discounts and generally make growth-oriented financial decisions. Instead of postponing new deals, acquisitions or orders until your clients have paid you, you can move forward and begin to make plans comfortably from a position of strength.
Protect your business from debt
When seeking funding, some companies opt for traditional bank loans. This can be a lengthy, complicated process that right away puts you in debt to pay off that loan. You assume loan payments on top of your other obligations. Factoring is different: you take on no debt. The factoring company is buying the invoices from you at a discounted rate. You won’t be affecting your company’s credit.
Maintain complete control of your finances
A factoring company won’t dictate how you run your business, how you bill clients or how you choose your clients. You will stay in complete control of your business processes and let someone else handle your accounts receivable.
Keep your collateral or credit history out of the picture
You don’t need to meet a long list of criteria to apply for factoring. Well-established factoring companies don’t require that you have certain types of collateral or that you have been in business for a certain number of years. You application is reviewed on the basis of your clients’ credit history, rather than your financial background.
These are just a few of the benefits of factoring with Interstate Capital, one of North America’s largest and best-funded independently owned factoring companies. Interstate Capital’s factoring professionals make decisions quickly, decisively and without outside interference, to ensure that you can move ahead soon with growing your business.