Need More Cash on Hand? Small Business Factoring is the Solution
Written by moxysupport on August 4, 2015
It takes a lot of guts to start a small business. Even when you know what you are selling is valuable and worth the price, you can never be quite sure that people will be into it or if they will find you. That is why when a business does take off, it is exceptionally rewarding. You took a chance, did a lot of hard work, and have succeeded. However, there can also be a bit of a downside to having a company doing really well. For example, if lots of people want your product, you obviously have to keep churning it out. This is not a problem as long as everyone pays promptly.
But, if you have orders with stores and they are buying large quantities, most likely they have set up accounts with you. This means that you send them the product and then have to wait for them to pay you. And while your products may be flying off the shelves, you really can’t say you have made any money until those checks begin to come in. This then can create a dangerous domino effect. You have sent all of your product out but have not gotten paid yet. As a result, you do not have any money to make new product or pay your employees. So, you are stuck. Your thriving business has now screeched to a halt. What can be done about it? The answer is small business factoring.
How Can Small Business Factoring Help?
With small business factoring, you sell your accounts receivable to a factoring company and in return they give you cash. It is really that simple. To prevent your company from stagnation while you wait for your customers to pay, you can get the money right away that you need to keep production going. Small business factoring is basically a win-win for everyone. You will have the cash to pay your employees, pay your rent, get the materials you need to keep making your product, and allow you to innovate and come up with new ideas to help grow your company.
Another benefit of small business factoring is that you do not have to deal with banks or other lenders. Loans can be helpful, but the process can be long and grueling, and if you need money quickly, they are certainly not the best options. Small business factoring allows you to get the money you need almost immediately without having to worry about paying any of it back, making high interest payments or having loans payable on your balance sheet.
Even if your company is doing really well, small business factoring can be an easy and seamless way to make sure things keep running smoothly. For all of your small business factoring needs, contact US Funding. We will gladly work with you to make sure you get the money you need in a timely manner. To learn how helpful small business factoring can be, get in touch with US Funding.