Unseen Benefits of Invoice Factoring for Startups and Small Businesses
Invoice factoring is an accessible financing solution commonly used by startups and small businesses to convert their unpaid invoices into cash they need. One of the advantages of invoice factoring is that the approval process is generally much quicker and simpler than that of traditional bank loans.
Additionally, factoring allows your business to avoid taking unnecessary debt and risks since it gives you cash that your business has already earned.
In this article, we go into the less obvious benefits of invoice factoring that make it an ideal financing option for startups and small businesses.
Because invoice factoring gives you immediate access to additional capital, you will be able to pursue business growth opportunities that you may have otherwise missed out on because you had insufficient cash on hand.
Since factoring invoices provides you with cash that you have already earned, you can use the additional funding for your business however you would like. Other financing methods, such as equipment financing, may require your business to use the funding for a specific purpose.
Improves Credit Rating
Invoice factoring can give you the cash necessary to catch up on payments and pay down on old debt, which can help to rebuild your credit score. Some factors that you work with may report your business relationship to a credit agency, helping your business build a positive credit history.
Invoice factoring can also provide back-office support services for your business. An experienced factoring team can help you make informed decisions regarding extending credit to potential customers. Factors can also help with invoice review and collection, maintaining financial records, and limiting your financial risks. Taking advantage of the back-office resources saves time and allows you to focus on growing your business.
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!
If interested in business funding, please contact:
Chris Han, Accel Business Funding
Tel – 818-963-8882