As each year winds down, it’s a good time to reflect on where we stand before the new year begins. For some of us, this was a challenging year with ups and downs. For some of us, it was a year of great change in our businesses as we navigated around shifting market conditions. For all of us, distractions of all sorts took their toll, and yet we kept our companies going – and growing.
To help keep up with operating expenses and to set aside funds for expansion, many business owners chose invoice factoring as a convenient, debt-free source of working capital. Factoring companies pay business owners upfront for work they have completed, so they don’t have to wait weeks or months to get paid. Let’s take a moment to see how factoring could change your company:
Imagine that your company manufactures toys. Your two largest department store chains owe you $50,000 for the shipments they received from you recently, which represents a good bonus for you with the extra orders. However, thanks to the long payment terms your customers negotiated, you don’t expect that payment to arrive before 60 days.
You have some cash coming in from last month to keep up with payroll and rent, but you’re stuck getting by week-to-week without ever getting ahead. Your production team has some great ideas about a line of smart new games for kids and your marketing staff has a promotion plan that could significantly increase your customer base. You would like to go ahead, if only you had the resources to fund these strategic programs!
You have the funds: they’re just sitting in your stack of unpaid invoices rather than in your pocket. With a quick call to a factoring expert at Interstate Capital, you can gain instant access to that $50,000 waiting for you. The friendly factoring specialists will advance you the bulk of those invoices upfront, with the rest coming after those two slow-paying department store chains send their checks.
So, with your new line of children’s games and your improved marketing campaign launched without cash constraints, by this time next year, you could be reflecting on the increased profits your company has enjoyed by unlocking your accounts receivable. And your employees could be enjoying their first holiday bonus!
Interstate Capital, a leader in the factoring industry since 1993, gives you instant access to the many benefits of invoice factoring.
Go with the flow
Invoice factoring can almost seem too good to be true. Instead of you having to wait 30, 60 or even 90 days to get paid for your outstanding invoices, a factoring company offers you immediate cash for your invoices. That means you can put that cash to good use elsewhere, such as toward hiring more employees, buying stock in bulk at a discount, and restocking your supplies. Essentially, Interstate Capital’s invoice factoring solution ensures that you always have a fluid cash flow and subsequently helps you take your business to the next level.
The best thing about using factoring services is the flexibility it affords. As opposed to a bank loan, which provides restricted funds, invoice factoring is unlimited; as your invoices grow, so does the amount of cash you can access. Factoring companies are not interested in your credit history, or how many assets you have. Rather they analyze the creditworthiness of your clients.
Any time is a great time to increase your cash flow and plan to grow your company. Call the team at Interstate Capital now to make a difference this year, next year, and for years to come. Who knows how your business can expand in the next 12 months?