Extended payment terms help you get more customers. But while that’s a good thing, it leads to unpaid invoices that tie up your funds. Meanwhile, you need money to continue stocking up on your inventory and supplies. You also have monthly bills and employees who expect and deserve to get their paychecks on time. If you’re struggling to make ends meet, consider the services of a factoring company for a cash flow solution. Find out how a factoring service can provide the support you need to grow and expand your business.
Generate Cash Flow
Many businesses that offer extended payment terms have measures to ensure they can afford to wait until their unpaid invoices are paid. But financial emergencies happen, or unexpected costs come up. If you find yourself in that position, a business invoice factoring canada service can help. You can sell your outstanding invoices at a discounted price. Once you do, you can get the cash right away. You won’t have to wait for 30, 60, or 90 days before the invoice clears. That should generate enough cash flow to keep your operations going.
Pursue Growth
Opportunities for growth and expansion need funding. Whether you’re investing in a new machine, hiring more employees, or moving to a better location, those decisions can positively impact your company’s growth and future. However, they come at a cost. You need capital to chase after those opportunities. An invoice factoring service can provide the funds you need right away.
Faster Than Loans
Banks and other lending services offer loans. However, those loans—especially from banks—require capital. That affects your company’s credit rating approval. If you are launching a business and want to establish your firm as a solid player in the industry, poor credit rating approval can hurt your chances of getting clients. That’s another reason a factoring company is a better option than banks. They provide funds more quickly. In addition, banks check the credit history of a company before they approve loans. But a newly established business doesn’t have a solid credit history yet. An invoice factoring company, though, will not hold that against you, providing you with the funds you need without feeling like you must jump through hoops or crawl through the eye of a needle. That’s a better arrangement, especially for new or small businesses requiring funds. You also incur minimal debt compared to the fees and risks you take with a loan.
Accelerates Expansion
When you turn to a reliable invoice factoring company, you can expect immediate liquidity. You won’t have to go through several months of waiting for customer payments to come through. In that way, your funds and growth aren’t tied to those invoices. You can make investments and expand your operations now instead of waiting for a year or two when momentum and market demand are not as high. If you do not want to miss out on a chance to drive your business further, take the chance by turning to an invoice factoring service for help.