Banks often have restrictive lending requirements relating to cash flow, profitability, equity, years in business and with banks seeking A rated credit score just to approve the loan many small to mid-sized businesses are denied. On the other hand, a factoring company has very few restrictions to approve a factoring loan. Our factoring decision to purchase invoices is influenced primarily by the quality of your customer base and their financial stability, and not the financial fundamentals of your company. Accounts receivable factoring is a popular and effective small-business financing tool. Temp staffing firms use full-service invoice factoring for payroll funding, and emerging companies in the Software, oil & gas industry and others are choosing invoice factoring over small business loans to provide their working capital. Let Moon Financial help you with your Invoice Factoring, Accounts Receivable, and all your Factoring Services needs.
I need working capital …….
My business is growing but I need a cash infusion.
Then you need to study the benefits of invoice factoring.
All businesses, at some point of time experience money deficiency the cash is coming in but at a very slow pace.
Banks sometimes decrease the credit extensions. Credit options for business owners seem limited to just bank loans.
After many years of continued growth, accounts receivable funding is going strong fortunately.
Options like invoice factoring are now very flexible and rates are lower than what most people think.
Top Benefits of Factoring Invoices are as follows:
Fast Access to Cash
The process of factoring is very fast and easy. Refunds are also provided within 24-48 hours on the invoices, which are approved. It is much faster as compared to the other traditional methods of taking loans from the banks or business.
Flow of cash without Debt
It is to be noted that invoice Factoring is not a loan, because it does not add on the balance sheets.
This means you do not have to pay monthly and your balance sheet is very clean.
Flexible Terms
Most of the today’s factoring programs do not have long-term contracts, maximums or minimums. According to the type of invoices, you want to factor, choose the option. Factoring is a process, which is made to make you grow, with your sales and funds growing together.
Reasonable Factoring Charges
Factoring cost have come way down in past years. The advances are there up to 95%.
However the fees also depend upon various factors such as volume, advance rates and customer’s period, number of invoices, customer creditworthiness and the size of the industry.
Stay In Control
What you need is cash, not a boss. The factoring companies do not tell you how to spend the money.
You do not have to buy any equipment or anything.
Relieve Pressure
There is no need to wait for your customers to pay so that you can pay for yours. Now you can meet payroll, pay bills
Raise the Bottom Line
Numerous companies take help of invoice factoring to raise the fund growths or profits. For the funds to expand, companies take advantage of the early payments discounts, raise inventory for big orders, adding staff or members, bargain bulk discounts from dealers. Factoring can also be used as a way to make money or to save money if used thoughtfully.
No requirement of strong financials
To qualify for a factoring service, you do not need to have good credit, a long solid financial history of years in business.
The factoring company is more dependent on the ability of your customers paying the invoices in spite of you. If you are trying to build your business and have a credit score full of bumps, then this is good news for you.
