Quick invoice factoring
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One way we do this is by taking over accounts receivable management. Thus, instead of having to wait day after day to know if you can receive a loan, you can often find out the next day-or sometimes even the same day, and then quickly receive the amount you need.Īt Factris, we specialize in speed and ease of financing. They want to know if your customers are able to pay the invoices in order to make their approval decision. Thanks to automated processes and custom-made online platforms, Factris makes it fast and simple to factor an invoice.Īnother reason factoring is faster is that with factoring companies focus on your customers and not your company. However, factoring is easily and quickly arranged. So you may have to wait a substantial amount of time only to be denied approval for the loan from the bank. In addition, your company is tested for creditworthiness with a regular bank loan.
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This delay can be especially difficult when you’re already struggling with growing cash-flow issues. That’s because bank loans aren’t always easy to apply for and can take time before you acquire funding. Easier than a bank loanĪs touched on earlier, trying to take out a loan can sometimes cause more problems than it solves. Thus, you no longer have to wait for bills to be paid before the money is in your bank account every month, allowing your business to scale with near-instant cash flow. So the more outstanding invoices you have, the more cash flow you can receive with factoring. This is thanks to directly financing debt instead of involving a third party to secure a loan to cover that debt. And the faster they grow, the more the funding gap grows.įactoring offers a unique advantage in this respect. This can create a significant funding gap. Cash Flowįast-growing companies have to incur a lot of costs in order to continue moving forward. This lets your business continue to grow smoothly. That’s where factoring provides a major advantage: instead of having to wait 30 to 90 days for customers to pay their invoices, you can get this money from a factoring company in only a few days. On top of that, there are overhead costs surrounding goods or services that are spent on the customer-the same customer that hasn’t yet paid their invoice. Money is constantly flowing out, with regular expenditures such as covering supply costs, payroll, etc. But in the real world, things are more complicated. If every customer or client paid their bills right on time, many businesses would never need financing. Here are three ways that your business benefits from factoring: Instant access to your money And there are financial needs for a business that aren’t satisfied by traditional financing. Why would a business choose factoring over traditional forms of financing? There are many reasons why it’s gaining popularity.
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The factoring company then takes over the process of collecting the debt from the entity that didn’t pay your invoice. When your business sells an unpaid invoice to a factoring company, you receive quick capital for the invoice amount, minus fees charged by the factoring company. But is it the best choice for your business? Find out the pros and cons of factoring to make an informed decision.īut first, let’s understand what factoring is.įactoring is a form of debtor financing. The same can be said about successfully running a business: no matter how high overall profits are, growth will grind to a halt without enough working capital.įactoring is proving more and more effective at supplying businesses the capital they need to keep growing. No matter how rich the soil is, a farmer is not going to grow anything without enough water. Find out what the benefits and downsides are to see if it’s right for you.
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More businesses than ever before are turning to factoring to meet their financing needs.