End 2015 On A Positive Note with Factoring Services
Written by US Funding on November 10, 2015
Don’t let end-of-the-year drops in income keep your small business from operating in the black. At US Funding, we know that successful companies experience the ebb and flow of income vs. expenses. And we know it doesn’t have to sink your company just because your customers are lagging in their payments while you still have operating expenses to cover. Talk with us about factoring services as the answer to your situation.
You’ve completed the work or provided the services that you were contracted for, and your customer is satisfied with the final product or assistance, so you sent the invoice. Now, you are between a rock and a hard place – waiting for money to come in so you can pay your own expenses. The professionals at US Funding think that factoring is a wise and viable solution for a small business to bridge that temporary gap. But, what are other options?
You could sell stock or find investors. This is easier said than done and it means you would lose some ownership and control over your business, not to mention how long it would take to get the money in hand. You probably wouldn’t receive funds in time to get out from under current monthly bills. Maybe factoring services is a smarter way to go?
You could apply for a bank loan. Again, this approach is easier said than done. A loan application requires filling out reams of paperwork and sharing all your company’s financial information just to see if you even qualify for a loan. Then, you have to wait for the necessary approval before receiving any money. After that, you have a loan that must be re-paid and additional debt added to your balance sheet. Perhaps factoring services are a better way to go?
You could turn to US Funding to take advantage of our factoring services. We think that you and your partners or stockholders or board members or other advisors will agree that this avenue is easier, faster, and less burdensome than any other method. Here is how factoring works.
- You identify those clients or customers for whom your company has delivered the ordered products or performed the requested services, but whose expected payment hasn’t been made.
- US Funding purchases this bundle of invoices from you for a lump sum that is a discounted amount of the total of all the invoices – also known as factoring services.
- You receive an infusion of cash to use in any way you need – you can make payroll, order supplies to meet a new contract, take advantage of a growth opportunity, or whatever your company needs; factoring services provide cash with no strings attached.
- We will collect each of the invoice amounts directly from the customers and will reimburse you that residual amount, minus our agreed fee.
And, that’s it! Factoring services at work helping your small business survive the economic ups and downs that we all experience.