Top 3 Benefits of Invoice Factoring
Companies that use invoices must wait months to receive invoice payment. For many companies, this wide cash flow gap makes it extremely difficult to sustain their operations. Thus, factoring becomes an enticing option for companies looking to solve their cash flow gap problem.
Here are the top 3 benefits of invoice factoring:
1) Quick Cash
Clients can take months to pay invoices and it is possible that they may delay or worse, default on their payments. Factoring invoices resolves this issue by providing your company with immediate advance payment on the invoices, allowing you to have sufficient cash on hand to sustain your business operations and deal with unforeseen circumstances.
2) Quick Approval
Because factoring companies primarily focus on your client’s credit history, it would be easy for your business to qualify for invoice factoring. You do not need to worry about bad credit preventing you from qualifying. Thus, even if your company has been denied bank financing in the past, you can still get approved for factoring.
3) Great Option for Start-ups
One of the biggest challenges that every start-up faces is having sufficient working capital in order to sustain operations and pursue business growth opportunities. Given that start-ups typically have no credit history, it is exceedingly difficult for them to obtain traditional financing.
This is where factoring comes into play. Startups can sell their outstanding invoices to factoring companies and receive upfront advance payments on those invoices. As a result, startups will have more cash on hand and will be able to maintain daily operations as well as reinvest the money back into the business. In short, invoice factoring is a great alternative funding option for startups due to its flexibility and quick turnaround time.
Accel Business Funding has extensive experience in providing invoice factoring services for many businesses.
If interested, please contact:
Chris Han, Accel Business Funding
Tel – 818-963-8882