What are the benefits of invoice factoring as your working capital loan?
All sized businesses run into situations where they can be strapped for cash. Whether you run a successful business or have recently struggled to make ends meet, this can happen to anyone. Luckily, there are financing options that allow you to access your working capital to manage your cash flow.
Invoice factoring, also known as invoice financing and accounts receivable financing, provides large and small business owners access to consistent cash flow by purchasing their outstanding invoices. An invoice factoring company advances you the money from the unpaid invoices upfront, charging a factoring fee. The cash advances are usually 80% to 97% of the invoice amount. Instead of waiting 30 to 90 days for a customer to pay, the financing company pays you in as little as 24 hours. Then, once the customer pays the factor, you get the rest of the amount, minus the factoring fee.
If your business is having cash flow issues or wants to stay ahead of your competitors, consider these benefits of invoice factoring for your business.
Fact access to working capital
Invoice factoring provides you with fast access to your working capital to stay on top of your business finances. If you are trying to purchase more inventory, hire more employees, or expand your business, factoring your invoices is the right decision. Porter Capital can approve you in 24 hours and advance your funds the same day. So you don’t need to wait to get paid.
Consistent cash flow
Late-paying customers or a decline in sales can put your business at risk. Porter Capital provides a line of credit and advances you up to 97% against your invoices. Your cash flow will stay consistent and you can cover all your expenses. Once your client pays on that outstanding invoice, the business loan is repaid.
Invoice factoring provides businesses with a flexible solution to their financing needs. Whether your business has a short-term or long-term goal, invoice factoring bridges the gap between staying on top of your expenses and keeping your company growing. You will also acquire no bad debt when you use invoice factoring.
The additional support that Porter Capital provides is hugely beneficial, especially for small business funding. Porter will check all customers’ creditworthiness to make sure you’re not working with bad debtors and will assist in collection efforts to get invoices paid quickly. We are here to see your business prosper and be with you through the ups and downs.
For more information on how we can get you access to your working capital, contact us today at (205) 397-1240 or get a free quote here.