Invoice factoring is a type of financing used by thousands of businesses across the United States to build financial independence. There are many benefits of invoice factoring, from improved cash flow to an increase in business productivity.
The primary benefit for companies using invoice factoring is improved cash flow. Instead of waiting 30 days, 45 days, or longer for customer payments, companies get an immediate cash advance on their invoices when factoring. Companies use this money to meet payroll, manage business expenses, or to take on new business.
Invoice factoring is not a loan, therefore companies using factoring are not creating or taking on additional debt. Many companies that do not qualify for traditional bank financing use factoring. Invoice factoring is based on the credit history and payment ability of the client’s customer, not the client’s.
One of the biggest cash flow benefits of invoice factoring is being able to schedule and pay company expenses. When payables are met, the potential for late fee’s or poor credit ratings disappear, and companies can build a strong credit profile, which will save money in the future.
Companies that provide work or services on net 30 or net 60 payment terms do so in good faith. They expect their customer to demonstrate that same good faith by paying the invoice when it is due. The reality is that net pay terms are unpredictable and change over time, even with long-established customers.
Scale Funding provides factoring clients an invaluable tool to gain insight into a customer’s ability to pay an invoice. The Scale Funding credit department provides clients with information on the credit and payment history of potential or existing customers. This information gives customers the ability to make an informed decision when accepting new work or taking on more work.
Customer support is a benefit of invoice factoring that many people don’t consider. At Scale Funding, our Relationship Managers and Account Administrators are some of the most experienced professionals in the factoring industry. They work closely with clients to ensure the invoices are received, processed, and funded without delay.
The staff at Scale Funding has extensive knowledge of the industries and work of the clients. Their expertise in business invoicing and account receivable processing helps get client invoices processed and paid quickly. When clients start working with new customers, it’s common for the Scale Funding to have long established relationships with that customer and share invoicing tips and procedures with the client.
Invoice factoring supplies the cash a business needs to operate successfully. With that cash comes the freedom for business operators to focus on the important parts of running the company. Instead of wondering if a check is coming or worrying about meeting payroll, business operators can work on improving productivity, keep equipment well maintained, or pursue and prepare for new opportunities.
With the consistent cash flow from invoice factoring, operating a business becomes easier and more productive. Factoring eliminates the waiting and worrying, and lets business operators do what they do best – run their company and grow their business.
Getting started with invoice factoring is simple. Scale Funding has over 20 years experience providing invoice factoring services to small and mid-size companies throughout the United States. For a free, no-obligation factoring quote and proposal, complete the form below, or call 800-707-4845