5 Large Volume Industries that Benefit from Invoice Factoring
Staffing companies use invoice factoring to maintain consistent cash flow so that they can pay their employees. Since staffing companies service many industries and recruit for different positions, invoices are paid at unpredictable times. This long gap between invoicing and collecting payment can quickly create a big cash flow problem. By converting unpaid invoices into immediate capital through invoice factoring, staffing agencies free up capital for their working capital needs, easily cover payroll, provide exceptional services, and continue to recruit top talent.
Prior to the delivery of any freight, trucking companies have expenses that must be paid first: gas, insurance, drivers salary, covering tolls etc. Sometimes, extra cash will be needed to cover vehicle maintenance and reimburse suppliers. Factoring ensures trucking companies can cover their day-to-day costs, attract quality drivers, build up their fleet without having to wait for clients to pay outstanding invoices.
Manufacturers have to purchase large quantities of materials and maintain a large employee base. Equipment damages and repairs can stall orders and be costly, which makes it necessary to always have cash readily available. Invoice factoring provides manufacturers with the capital they need when they need it.
Wholesalers and distributors can find themselves in difficult financial situations due to high overhead costs, off-seasons, and slow customer payments. Invoice factoring provides wholesalers and distributors with the additional capital needed to fulfill orders and keep operations running smoothly during slow periods.
High-budget projects combined with slow-paying customers can create a considerable funding gap. Consultants, architects, and other professional services often find themselves accumulating many unpaid invoices and having insufficient working capital. Invoice factoring helps convert those unpaid invoices into immediate capital to cover daily operations, fund growth efforts, and bridge their funding gap.
Accel Business Funding has provided invoice factoring and has funded many businesses for more than $380 million. When banks say NO, we say YES to funding in 24 hours!