There are times when you may be experiencing a cash flow crunch, or have little or no credit history and you believe traditional forms of finance may just not be an option. During these times you may also worry that invoice factoring companies will also turn you down because of some form of poor credit history.
The invoice factoring promise of an injection of money now for invoices due to be paid by your customer later could be just what your company needs to succeed. However, rather like applying for a mortgage, or filling out your tax return, the process may initially seem intimidating.
Any application that involves filling out paperwork, and a request for detailed documentation, certainly requires a level of commitment. Once you have investigated invoice factoring as an option, consider the complete invoice factoring cycle to help you decide if factoring really would be a great fit for your company.
The steps are simple, but it pays to be prepared:
Topics: How to Grow Your Business, About Invoice Factoring, Financing Government Contractors
Considering invoice factoring, but worried about the implications if a customer does not pay? Allow Bay View funding provide some clarification the process.
Firstly, to put your mind at ease before we go into details, an efficient invoice factoring company will thoroughly vet your customers for reliability to reduce the risks associated with non-payment. An invoice factoring company should always:
Topics: About Invoice Factoring
Invoice factoring provides businesses with quick cash they can use to invest in expansion or cover expenses. However, business owners often wonder if it’s the most cost-effective way to obtain funding. Here’s a breakdown of the process, a comparison of recourse and non-recourse factoring, and a look at factoring fees.
Topics: About Invoice Factoring, Cash Flow management, Invoice Factoring Costs, Invoice factoring
All types of financing involve risk. In the field of invoice factoring, the risk is usually derived from insolvent customers. In invoice factoring contracts, either the factor or the client company assumes the risk of nonpayment. Understanding financial risk can help you choose the right type of factoring arrangement for your company’s needs.
Topics: About Invoice Factoring, recourse and non-recourse factoring
Startups can be some of the most innovative business ventures. Being innovative can also involve a lot of risk, and many startups suffer from time constraints, staffing to meet demands, and difficulty obtaining funding. Invoice factoring may be able to help with funding by optimizing cash flow without the long delay that generally follows the invoicing process. Using invoice factoring may help ensure that your startup won’t run out of funds, which could potentially halt operations and slow growth.
Topics: About Invoice Factoring, Start up funding
Business is full of unexpected surprises, some of them expensive. Invoice factoring can help you turn unpaid receivables into workable capital for your company. If you have unpaid invoices, it is unwise to let them sit for too long. The faster you can collect (or receive payment from) them, the less damaging the burden from surprise expenditures can be.
Topics: Alternative Financing, Business Growth, About Invoice Factoring, Cash Advance, Cash Flow management
