Manufacturing & Fabrication Companies
Have You Considered Invoice Factoring for your Manufacturing Business?
If you are the owner or operator of a manufacturing business, you understand how fierce the competition can be. Everyone who runs a business is looking for an edge and a way to stay relevant, not to mention profitable, in an ever-changing marketplace. One thing you can do to help your manufacturing business is invoice factoring.
What is Invoice Factoring?
When you use factoring, your business sells accounts receivable for cash. The factoring company essentially works as a credit department that is in charge of collecting and processing payment of the invoices.
Why Do Businesses Use Invoice Factoring?
Companies decide to use factoring for a number of reasons. If a business has suddenly taken off, it could be short on cash if it is tied up in inventory, accounts receivable, and other places. Factoring can solve this problem. New businesses utilize factoring because it can often be difficult to get financing. Banks may be reluctant to give money to companies that have just started out and do not yet have a lot of experience or credit history. Again, factoring is a way for a company that is new in the industry to get the money they need to grow.
Why Use Invoice Factoring for Your Manufacturing Business?
If you are a new company or are having some credit difficulties, factoring could be a great solution. The main goal of factoring is to give businesses the cash they need right away. This will help to pay down any debt or fix any credit issues. In addition, with the money received from invoice factoring, you will be able to buy any necessary inventory or equipment and to meet payroll and tax requirements.
With factoring, your business will have complete control over all of your operating costs. You have the ability to choose the number of invoices you factor as well as how often. This allows you to identify payment patterns and submit invoices at the best time in order to keep your costs as low as possible.
More Ways to Save Money
When you decide to use factoring, you will also have other options that can save your business money. With back-office support, the factoring company will collect directly from your customers and also monitor all accounts. If you factor many invoices in a certain period of time, you also may be eligible for a smaller fee. In addition, you could have the opportunity to negotiate discounts with your creditors for things like early payments.
If your company is in need of some cash for whatever reason, think about invoice factoring. At US Funding we make the factoring process easy. For over 15 years, we have been offering invoice factoring services and cash flow management solutions to companies in the Triad area, and we can do the same for your business. To see how invoice factoring can help your manufacturing business, get in touch with US Funding today.