Small Business Factoring as a Cash Flow Financing Solution
Invoice factoring is sometimes also referred to as cash flow financing or debt financing. Factoring is a financing tool that enables small businesses to leverage customer debt (unpaid receivable invoices) to access working capital – or cash flow. By improving cash flow, companies are better able to take on new business, meet financial obligations and reinvest in their business more quickly.
A small business factoring invoices can get immediate access to money that might be tied up in customer invoices for 30-45 days, or even longer. Cash in hand, they can reinvest in their business immediately. Instead of waiting on customer payments, they can create more consistent, predictable cash flow.
Minimizing the costs of this cash flow financing solution is the key to getting the most benefit from small business factoring. From the cost of receivables financing (the factoring fee) to add-on fees that small business factoring companies might tack on, the more a small business pays for factoring services, the less effective it is as a cash flow financing solution, since fees and costs directly impact the amount of cash flow unlocked when a small business factors invoices instead of waiting for customers to pay.
Our team has experience working in a factoring company. We know the process from application and due diligence through to approvals, customer credit limits, funding, factoring fees and more. We source agreements from top small business factoring companies who are able to offer our clients:
- Low factoring rates – factoring fee as low as 1%
- Free same day funding
- Fast, high advances – up to 98%
- No application or due diligence fees
- No cost for customer credit checks
- No hidden fees or fees for scheduling processing, invoicing or notifications
- No factoring minimums – a small business factoring invoices can do so when it’s best for their business
Plus, we can offer clients a low factoring fee and high advances in the form of non-recourse factoring, which can reduce or even eliminate a small business’s financial risk from bad debt.
Whether your small business is exploring the potential cash flow benefits of factoring invoices or you’re already factoring and you want to be sure you have the best program in place for your business, we encourage you to request a free, no-obligation quote. Get answers in 24-48 hours and you could go from approval to your first funding in hours, so you can speed up cash flow by factoring invoices as quickly as possible.