Magnify your business with competitive invoice factoring services.
For businesses that sell their goods or services on credit, having an adequate amount of working capital on hand is vital for financing day-to-day business operations. On a balance sheet, it represents a snapshot of the financial state of the business—but in real terms, it means the ability to pay staff and keep the lights on in the building. While the amount of working capital that is “adequate” varies for each business, one way to ensure that there will be enough is to use invoice factoring, which provides immediate access to cash. This access to cash is crucial for maintaining operations and seizing growth opportunities.
Apply for our invoice factoring program today by calling 1-855-EZ-FACTOR
What is Invoice Factoring?
Invoice factoring is a financial solution that allows businesses to convert their unpaid invoices into immediate cash. It’s a short-term alternative financing option for businesses that send invoices to customers. By selling their outstanding invoices to an invoice factoring company, businesses can receive up to 90% of the invoice value upfront, improving their cash flow and reducing the burden of collections. This process not only provides immediate cash but also helps businesses maintain a steady cash flow without waiting for clients to pay their invoices.
Apply for our invoice factoring program today by calling 1-855-EZ-FACTOR
How Does Invoice Factoring Work with Unpaid Invoices?
Business invoice factoring is an alternative to a bank loan where instead of an institution lending money to the company, the company sells their unpaid invoices to a factor for cash advances. The factoring company pays a significant portion of the invoice’s value upfront, typically 80-90%. The factor waits for payment from the business’ client, and then pays the rest back to the business minus a small factoring fee. Invoice factoring means immediate access to funds otherwise tied up in accounts receivable, and always having enough working capital on hand.
Benefits of Invoice Factoring
Invoice factoring offers several benefits to businesses, including:
Simplified Accounts Receivable: The factoring company handles the collections process, freeing up time and resources for the business to focus on growth and operations.
Improved Cash Flow: By receiving immediate cash for their unpaid invoices, businesses can cover operational expenses, invest in growth, and meet financial obligations.
Reduced Risk of Bad Debt: The factoring company assumes the risk of non-payment, reducing the risk of bad debt for the business.
Increased Flexibility: Invoice factoring allows businesses to access cash quickly, without the need for a traditional bank loan or line of credit.
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Factoring – A Smart Alternative to Bank Loans
Bank loans are often hard to come by for small businesses. Factoring is a great alternative to bank loans because approval is based not on the credit of the business but instead on the credit of their customers. This takes the burden off start-ups or companies in financial trouble, and allows them access to financing in order to grow their operations.
Try Invoice Factoring Today
Invoice factoring is a great way to smooth out working capital, and the process is easy to start. Contact EZ Invoice Factoring today for more information and to get a free quote.
