Small Business Factoring Works for Any Successful Business

Written by US Funding on October 26, 2015

If you’re managing a small business through the ups and downs of challenging economic times, you’re already familiar with the basic advice offered by experienced business leaders:

  1. Control your company’s growth. Grow business slowly, building a sustained rate that isn’t dependent on just a few customers.
  2. Stay aware of your cash flow. Know how much capital you have and how long it will last; keep thorough records and make every expenditure count.
  3. Plan ahead for a rough patch. Keep reserve capital nestled away as insurance against unexpected increases in operating expenses or decreased income.
  4. Learn about loans and credit. Develop relationships with lenders well before you need to borrow money; know what kinds of loans and credit will be good for your company; research the benefits of small business factoring.

There very well may come a time when, despite all efforts to stay on top of periodic financial ebbs and flows, your business’ actual income is lagging behind its receivables. Even though your company has completed enough work to generate income to cover expenses, customers are taking 60-to-90 days to pay for that work. This can cripple your ability to make payroll on schedule, pay your own bills on time, or stock needed inventory for work in progress.  It can even prevent you from capitalizing on special offers from long-term vendors or closing deals with new customers or any number of other business opportunities. At times like these, you need an infusion of cash and you need it faster than a conventional bank can process a loan application. It’s in times like these that you need to consider the benefits of small business factoring.

A reputable company such as US Funding can provide immediate funds through small business factoring for you to use in any manner you wish – for payroll or new hires, increased sales and production or servicing new accounts, more marketing and public relations efforts, paying off debt to improve your credit rating, or any of a number of ways to support the growth and success of your business. The process is simple, transparent, and immediate.

  • Identify those customers whose orders are fulfilled or services have been provided, but whose payments are still outstanding.
  • Sell that bundle of invoices to US Funding for a discounted amount of their combined total face value.
  • Within 24 hours, receive that total sum to apply to your business in any way you deem appropriate.
  • US Funding proceeds to collect the full amounts represented by the collection of invoices.
  • After payment, you will receive the balance of the original total, minus a previously-agreed fee that US Funding will retain for providing the service.

And, that’s all there is to it. You don’t have to wait for a bank to review your financial information and approve or disapprove your request, you haven’t added to your business debt load, and you have funds in hand immediately. That’s US Funding, and small business factoring, at your service.

Posted Under: Blog

Comments are closed.