Solving Funding Gap with Invoice Factoring
Waiting months for your clients to pay their invoices can hurt your cash flow. Many companies cannot pay off their business expenses while waiting for their clients to pay their invoices. If your company is growing quickly, this funding gap problem quickly intensifies.
Invoice factoring can help companies improve their cash flow.
How does it work?
Let’s imagine that Company A has cash flow issues. Company A has employees to pay but has insufficient cash on hand. The owner is still waiting to collect on invoices that are due in 2 months. Thankfully, Company A’s customer has good credit.
The owner decides to sell the invoices to Accel Business Funding, a factoring company. After checking the creditworthiness of Company A’s customer, Accel Business Funding agrees to purchase the invoices and provides Company A with upfront advance payment (less a factoring fee).
Now, Company A has the money it needs to make payroll and cover its other business expenses. And, Accel Business Funding will assist in collecting the invoice from Company A’s customers, which means that Company A can focus their main business instead of spending time on collection.
Invoice Factoring is a vital resource for companies that need cash now. Accel Business Funding is a trusted funding partner for businesses looking for quick financing with low fees and we can help solve your funding gap with our Invoice Factoring services.