Better Cash Flow
The primary benefit of factoring is better cash flow. Instead of waiting weeks or months for your customers to pay, factoring enables you to choose the exact date when you'll get paid.
The irony is the more sales a profitable business makes, the faster it tends to run out of cash. Hence, an otherwise successful business will always need a way to finance those sales.
Having the ability to smooth out your cash flow, through the selective use of factoring, sure beats worrying about not having enough money to operate your business properly.
Unlike conventional bank financing, the qualification process for factoring is quick and easy. You may have gone through a bankruptcy in recent years. Your business may have just started recently. In short, your own credit history may not be so good or even non-existent. When it come to factoring though, that may not matter. Your own credit history has little bearing on being able to qualify for factoring. Instead, the credit decision is mostly based on the status of your largest and best paying customers. Thus, if your business provides a high quality service or product to larger creditworthy companies or government entities, you may qualify for factoring, regardless of your own credit history or financial situation.
For all practical purposes, factoring functions like a series of loans to your business. In essence, factoring enables you to borrow money as needed. However, normally it's your customers---not you---that are obligated to repay those loans. If there are no disputes with your products or services, that repayment typically occurs within 60 days. And once your customer pays a factored invoice (to our remittance address instead of yours), that particular "loan" transaction is automatically extinguished. Only if and when your customer doesn't pay an invoice within 90 days, does it revert to being a debt you owe.
Factoring also enables your growing business to get an ever expanding supply of money to work with---without you having to give up any percentage of ownership to an investor.
Call 541-484-7044 for more details or a quote.