How a Factoring Company Can Help Your Business Grow
Written by moxysupport on March 19, 2015
As the owner of a business, you have a lot of obligations. First and foremost, you are in charge of doing whatever you can to grow your business and help it to become as successful as possible. However, as you probably are aware, that is often a lot easier said than done. This is why you know how important it is to seek out any competitive advantages that you can find. It is essential to utilize whatever you can in order to fulfill your responsibilities to your customers, employees, and any investors. One thing you can do to help your business is to seek assistance from a factoring company.
What Does a Factoring Company Do?
With a factoring company, you can sell your invoices – or accounts receivable – in order to obtain immediate cash. A factoring company is particularly useful for businesses that are new or expanding, may be experiencing some credit issues, or are finding it difficult to acquire financing from a bank or other lending facility.
Why Use a Factoring Company for Your Business?
A factoring company can offer you many benefits, including:
Improved cash flow
When you sell your accounts receivable to a factoring company, right away you will have the opportunity to get up to 85 percent of funds against the value of the invoices. With this money, you will be able to use it wherever it is needed without delay. It could go towards new tools and equipment, to pay your employees, settle tax obligations, pay your creditors, or anything other business expenses.
A factoring company can handle all correspondence with your customers, including preparing and sending out statements, making calls, and collecting payments. In addition, the factoring company will maintain detailed accounts of all transactions so you know that everything will always be accurate.
With a factoring company in charge of collecting payments, there is one less area that you will have to worry about. You will be able to spend your time and focus on other matters that are just as pressing. Because of the better cash flow, you will also be able to make smarter and more timely financial decisions.
By using a factoring company, you will have more money on hand to pay suppliers earlier and possibly purchase supplies in larger quantities. This could allow you to save money with early payment or volume discounts.
Enhanced financial planning
When you know exactly when you will be paid, this enables you to make better financial plans for the future, thus making the budgeting process more accurate. The earlier you make plans, the more likely it is that they will be fulfilled.
Factoring may be the perfect solution to any money issues you are currently having, and when you only want the best factoring company, choose US Funding. Whatever the reason you need money, our professionals will work with you to ensure that the process goes smoothly and that you get the exact services that you require.