Small Business Factoring Helps Your Company over Financial Humps

Written by moxysupport on July 7, 2015

We all know that owning or managing a small business has its challenges. You have to direct sales and marketing, oversee operations and production, supervise personnel and payroll, and be the representative who is active in the community. It’s a balancing act, and if any one area develops problems that demand your attention, the other areas will suffer from inattention.

And, if your small business is like others, the area that tends to concern you consistently is the ebb and flow of finances when customers’ payment of invoices lag behind the need to meet current expenses. At US Funding, we think small business factoring could be the answer you’re looking for.

Factoring, or accounts receivable financing, provides needed capital quickly without risking your small company or its reputation in the community. But, factoring is just one of several options:

• Borrow from a bank. This is an obvious choice, but has a few negative side effects. First of all, the debt will appear on your balance sheet with all the impacts that such increased liability would have. Also, borrowing requires filling out a mountain of paperwork, sharing all of your financial information, and waiting a long time to find out if you are approved or not.
• Lay off personnel. Such an action would certainly conserve funds in the short term, but what else would happen? The decrease in your already-small staff would increase the load for remaining workers and ultimately decrease productivity. This could certainly lower morale, while it would result in smaller income and less growth and success.
• Delay paying vendors. While deferring payments might buy a little time, it could seriously harm your professional relationships. Any discounts or special considerations in contractual agreements due to your reliable payment history will be harmed, as would your overall reputation in the marketplace. Your ability to do business will be seriously damaged.

Obviously, none of these choices is optimal, and each has drawbacks to consider. Accounts receivable financing is really a healthy, viable alternative to consider.

• Use factoring for your small business. With factoring, you decide which of your unpaid invoices to include in the transaction. We buy the bundle from you, and give you as much as 85 percent of the face value immediately, to use in any way you need to best continue your small business. Then, we assume the responsibility for collections until all the invoices are paid. We keep a previously-agreed fee and send the balance to you.

Factoring really is just as easy as that. No hoops to jump through. No debt. No waiting. No layoffs. No decreased production. No payment delays. No damage to the company.

With US Funding, there isn’t an application fee or monthly minimum, and you get your money within 24 hours. We use state-of-the-art systems along with our well-tested procedures, so everything is accurate and efficient. Let us work with you to develop a customized solution using small business factoring.

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