Using Invoice Factoring To Solve Short-Term Liquidity Crunches

Just about every small business owner knows that money crunches are real and serious. Often, it’s not a question of making sales, but instead the lag time between making a sale and getting the money in hand. The business billing and payment industry can quite simply be slow. Often, there is a lag time between selling your goods and services and actually receiving payment.

That’s why we now offer invoice factoring to help you solve your short-term cash problems. More or less, you provide us with an invoice, and we provide you with cash. Usually, we can offer anywhere from 85 to 90% of an invoice. The companies that owe you money will then pay us directly. Once we receive payment we will send on the rest of the balance minus fees and interest.

You can then use this invoice to pay your staff, buy supplies, make rent, and to cover other costs.

Why Do You Need Invoice Factoring?

Problem is, while small businesses often have to wait to get cash, the parties they, in turn, owe money to simply aren’t willing to wait. Employees, land lords, suppliers, etc. all often require and demand quick payment. Employees aren’t willing to wait until your checks clear in order for them to get their pay checks. Some suppliers can be flexible with payments, others can’t. And landlords often expect regular, monthly payments.

You can take out a business loan to cover your expenses. However, small businesses often struggle to secure loans. The interest rates can be high, many banks will flat out reject you, and even if you get cleared for a reasonable loan, it can take a long time to get cash in hand.

With invoice factoring we can provide you with cash quickly. Think 24 hour quickness. That’s right, we are often able to provide funds within 24 to 72 hours. We aren’t going to watch over your shoulder either to see how you’re spending your money. After all, it is your cash.

Further, you can choose which invoices to use for invoice factoring. You might be confident that Acme Web client will provide payment in seven days. However, Acme Auto probably won’t provide payment for 28 days. So why not send along the Acme Auto invoice and get your cash now?

On our end, the invoice provides security. An invoice can be collateral, and whenever a lender has collateral, the loan itself is less risky. This lower risk profile means we can offer you more favorable terms. So ultimately, invoice factoring can be a win-win for both parties. Give us a call today and find out how invoice factoring can help your business!