If you’re looking to finance your business, consider factoring. Business loans from the bank come with high interest rates and restrictions, while factoring can provide a peace of mind that your company needs to grow. Let’s take a look at just four of the ways factoring could benefit your business.
1 ) Immediate Cash
Working with a factoring company allows your business to have access to immediate cash. The factoring company will buy your business’s accounts receivables for a fee. The factoring company then gives you immediate cash and takes up the responsibility of receiving payments from your clients.
Waiting on payments from clients can cause backup of cash flow and even temporarily shut down your business, so taking this burden off your shoulders can make a huge difference in how your company operates. With factoring, the growth of your business won’t depend on how quickly your clients pay for your company’s good and services — you’ll have the cash you need, when you need it.
2 ) Supplier Discounts
Without immediate cash, your business could be forced to only purchase small orders from your suppliers. With the immediate cash that factoring provides, your company can purchase larger orders from suppliers. As you purchase larger orders (and purchase them more frequently), you’ll strengthen the relationship that you have with your supplier. Soon, your supplier will give your company discounts for being an important customer, and that means even more money in your pocket.
3 ) Less Credit
If your business has cash readily available, there won’t be a need to get as many loans from the bank. You may not be able to avoid taking out loans altogether, but the number of loans your company has should decrease with factoring. Loans to take care of your business’s everyday tasks won’t be needed. You’ll already have the cash!
4 ) Better Credit
Immediate cash allows your company to pay its bills on time. Factoring eliminates the worry of making payroll or rent. Your company will even have the cash readily available to pay off debt. As you start to make timely payments, your company’s credit score will see a boost. A high credit score will show your clients and vendors that your business is trustworthy.
Let Corporate Billing Be Your Factoring Company
Are you interested in benefiting from factoring? Corporate Billing can get you guaranteed results. Contact us today to learn more!