Can Invoice Factoring Make You Money?

August 17, 2016

Factoring companies help businesses fill their cash-flow gap by providing instant cash for their invoices. Instead of waiting 30 days or more for customer payment, invoice factoring provides you with same-day cash.

Invoice Factoring as a Long-Term Business Strategy

A common perception people have of factoring is that it’s a short-term solution to obtain working capital for start-ups or growing businesses. While invoice factoring does help for short-term needs, it can also be an effective long-term strategy for many industries.

No matter what business stage you’re in, invoice factoring provides cash flow, giving you the ability to continue operations and grow your business.

Cash flow is what makes a business run. Regardless of profitability, a business cannot survive without adequate cash flow.

Cash Flow & Rapid Growth

When a company is growing rapidly, cash flow can become a big challenge to keep up with the demands of a growing business. Invoice factoring is a creative finance solution that can aid companies in expansion and growth mode. As accounts receivables grow, so does the amount of funding.

Growing companies turn to invoice factoring to increase their working capital while keeping added debt off  their balance sheet. This strengthens long-term growth strategies. As sales and production increase, so does the working capital.

Can Invoice Factoring Make You Money?

Yes. For many of our customers, the ability to grow and increase sales wouldn’t be possible without our factoring services.

Although some turn to business loans or business lines of credit when looking for financing options, invoice factoring is a better alternative for many businesses.

• Factoring doesn’t create debt on your balance sheet.
• With invoice factoring, the amount of capital available increases as your accounts receivables increase.
• There is no limit with invoice factoring. Business loans and business lines of credit limit the amount of capital available, which can inhibit business growth.
• Invoice factoring is quick and easy to get started. There is minimal paperwork. Approvals are done within 15 minutes and funding in just 24 hours. Alternatively, with business loans or lines of credit, approvals can be lengthy and extensive. Funding can take a few months or more.

Success Story: Invoice Factoring Helps a Telecom Company Make More Money

The Challenge

A Michigan tower service company had recently won several new contracts. Because of the increased demand, the tower service company needed more working capital to support the business demands and operating costs.

The Solution

Scale Funding provided a factoring line that enabled the tower service company to accept new contracts and continue to grow and increase their profits.

The Result

Today, the tower service company continues to accept new and bigger contracts. The amount of working capital provided by Scale Funding grows as they grow.

Since starting to use factoring to aid with cash flow, the company has added new customers, hired more employees, increased its profits and has been paying off its business line of credit through the bank.

Grow Your Business

If you’re ready to take on new contracts and grow your business, but need more working capital, call one of our financial experts at Scale Funding today. Fore more than 20 years, we’ve provided invoice factoring solutions to companies in a variety of industries and business stages.

It is easy to apply for a free invoice factoring quote. Simply call (800) 707-4845.