Small Business Factoring Companies
Invoice Factoring For Small Businesses
Invoice factoring has been a long standing option for small businesses to obtain cash flow support. If your transactions are with other businesses or the government (B2B or B2G), factoring can work for many businesses. For example, IT businesses, startups, apparel businesses, and many other service and supplier based businesses can benefit from small business factoring.
As your business grows so does your payroll, supplier payments, and other expenses. On top of that traditional methods of financing like banks and lines of credit may not be enough to support these needs. However, financing with a small business factoring company is directly tied to the amount of outstanding receivables available. As that amount increases, so does the amount you have access to with financing. Traditional financing options also require a long history of financials, incur debt on a company’s balance sheets, and won’t expand their lending lines immediately as your revenue grows.
Small Business Factoring Rates and Terms
Whether you’re on your first invoice or your thousandth invoice, small business factoring is a great option for your short and even long term business cash flow requirements. A small business factoring company will look at invoices that are typically paid between net 30 and net 90 day terms. In some situations they will even look at invoices as far out as 120 to 180 days. Their main criteria is the credit worthiness of your customer, not so much your own personal or business credit. The better standing of your customer the better rate, terms, and amounts you’ll have access to.
Once a small business factoring company has completed their approval process they will request a signed agreement and schedule of invoices to factor. Next, the invoices are verified and are typically advanced on in 48 hours or less. The factor will continue the process based on your needs and will factor invoices you choose. Whether you want to factor all of them or just a few the factor will be there to assist.
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Benefits of Using Small Business Factoring
Factoring is a readily available solution to your cash flow crunch. Whether you’re waiting 30, 60, or even 90 days to get paid there is a small business factoring company for you. Check out some of these other benefits from the factoring companies we work with: