• Accel Business Funding

Will Invoice Factoring Make You Look Bad To Customers?

Invoice factoring allows your business to collect the payment of an unpaid invoice immediately, by selling those invoices to a factor company. In most cases, a factoring company will notify your customers about how they will need to direct their invoice payment to them rather than to your company. Because of this, some businesses become concerned that invoice factoring may make them look bad to customers.


The good news is that invoice factoring does not make you look bad to customers.


Why Does Invoice Factoring Not Make My Business Look Bad?


For the most part, your customers care about the products and services you provide and not about where to pay back their invoices. Whether it is a factoring company or another department in your business, customers rarely pay attention to where they send their payments as long as they know they have paid the bill itself.


While you may be worried that customers might become concerned about your business’ financial health because you used invoice factoring, business-savvy customers will generally regard your decision positively.


For starters, they will likely know that invoices can be an unreliable source of cash flow and will therefore not have a negative impression of your decision to use invoice factoring. They will see that you have taken steps to maximize your cash flow, which is what any good business should be doing.


Some customers may also perceive your decision to factor your invoices as a sign that your business is growing, as invoice factoring is also commonly used to fund business growth efforts.


Conclusion


Business owners may worry that invoice factoring can cause your business to look bad to your customers. However, it is more than likely that your decision to factor will give a positive impression to your customers about your business health and reputation.


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


www.accelbusinessfunding.com

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