There are many benefits that factoring can provide for your business. Some of the most substantial benefits are listed below.
- Stimulate cash flow and improve credit rating
Selling your invoices can increase your cash flow and working capital. You can use the cash to increase sales, pay bills, or buy needed inventory. Funding can usually be obtained within 24-48 hours. - Qualify now based on the strength of your customers
Factoring is available to any business that produces invoices. Since factoring relies primarily on the financial strength of your customers, you can qualify even if your business is new, or lacks hard assets to qualify for a loan. - Improve your debt ratio
Since factoring transactions do not show up on the balance sheet as a liability or loan, you can preserve your financial leverage to handle new debt. - Offer better terms to your customers and increase sales
Better terms can be more attractive to your customers than better prices. Factoring allows you to negotiate on terms instead of price. Credit can also be extended to your larger customers without asking for COD.
- Get results quickly
Factoring can quickly raise the levels of funds available to meet the needs of your expanding business, without a lot of hassle. - Pay your suppliers faster
With increased cash flow, you can take advantage of early pay discounts by paying your suppliers faster. - Factor only what you need
Your business is not required to factor invoices from all of your customers, only enough invoices to cover the money you need. There are no minimums OR maximums on the amount your business can factor. - Avoid early termination penalties
With factoring, there are rarely lump sum payments or penalties for ending the factoring relationship. - Transfer management of your accounts receivable
You decide whether to maintain control of your invoices or let us handle administration.