Why Small Business Factoring is Perfect for Your Company
Written by US Funding on November 23, 2015
If your successful small business is progressing smoothly through the cycles of monthly customer invoicing and payments received, without any inconvenient fluctuations of income stream causing occasional short-term difficulties meeting financial obligations, then we congratulate you! In our experience, however, new or small companies that depend heavily on customers to pay their bills on time in order for the company itself to be able to pay its own bills on time, frequently experience little temporary periods of financial stress. Our invoice factoring services can be exactly what you need to get through such short-term demanding times. All you have to do is turn to US Funding for the small business factoring plan that is right for your company.
What is Factoring?
Factoring is a legitimate, centuries-old way of providing needed funds when a business’s expected income is lagging behind estimated payment dates. It works like this:
Your small business has some customers who are late paying for the products or services that you have already provided to them. The money is owed you; you have earned it. But, your customers just haven’t paid their invoices, yet. So, you identify those invoices that need to be paid – whether the amount is small or large – and sell them at a discount to us at US Funding. We pay you a percentage of the total of those invoices, which provides you with capital for whatever small or large needs you have – payroll, inventory, marketing, paying your own bills, etc. – and we proceed to collect payment of the invoices. When we finish collecting the outstanding payments, we provide you with the remaining balance of your original total, minus a collection fee that we agreed upon at the beginning. That is small business factoring at work for you.
Unlike borrowing from a bank, factoring is an advance made against a finite total represented by accounts receivable. Because they are lending money based on your reputation and projected earnings, banks have to comply with regulations that include providing them with all your financial information to prove your stability. A factoring company has more flexibility to offer customized financing solutions that better fit your actual needs and not a bank’s federal guidelines. And, a factoring company can do so quickly, sometimes within 24 hours!
At US Funding, we have a proven record of success in this field. We have been doing this since 1999 and our knowledgeable professionals have a combined 35 years of experience crafting plans to meet the cash flow needs of our valued clients. We offer competitive rates, proven methodologies, state-of-the-art systems, strong financial backing, and flexible solutions. There is no application fee and no monthly minimum.
We specialize in many industries including distributors and importers, manufacturing, service providers and staffing agencies. So, if your industry experiences seasonal or uneven sales patterns, your credit line is maxed out, you have a spotty earnings or sales history, you have slow accounts receivable turnover, or any other cash flow challenge, let small business factoring work for you. Contact US Funding so that we can provide you with the cash that you need to keep your business going…even during times of slow collections.