If your business has occasional cash flow problems because customers are inconsistent in paying their invoices, you may be able to achieve positive cash flow through factoring. For many businesses, factoring works better than trying to obtain bank loans, which might take weeks or months to process. Here are some ways that factoring can be highly advantageous for your business.
Easier to Qualify
For the last 10 or 15 years, the number of approvals granted by traditional banks has been steadily declining, and for the average small business, it has become very difficult to obtain a loan. With factoring, the main criterion for approval is your customer’s credit standing rather than your own, so chances of approval are much better.
Less Receivables Management
In factoring, once you sell invoices to a factor, that company becomes responsible for collecting on the invoices. That means you no longer need to have a staff dedicated to collections, and you can reassign them in the company to perform more business-specific tasks.
You can choose how many invoices you wish to have factored, and there is no long-term commitment to any specific factor. You can literally enjoy the service whenever you wish, and to whatever extent you deem advisable.
Immediate Cash in your Hands
Instead of waiting 90 days for customers to pay their invoices, you’ll have cash in your hands from the factor in a matter of one or two days. This will allow you to meet pressing business expenses, and perhaps take advantage of a business opportunity that arises.
Easier to Arrange
There is far less paperwork to go through when setting up factoring for your company. Because you won’t have to wade through mountains of paperwork for approval, everything can be wrapped up fairly quickly, and with far less hassle.
Interested in Factoring for Your Business?
If you’ve been considering factoring for your business, we may be able to set you up and approve your request. Contact us at KASHER Capital so we can discuss how factoring will benefit your business, and how easy it is to get started.