Small businesses that have just started out are often not in the position to acquire financial assistance very easily because they haven't been operating for very long. Factoring is therefore considered the best cash flow solution if your availability ofPosted by Newell Vognsen on June 14th, 2021 We provide you with instant cash by purchasing your accounts receivable invoices from you and pay out a discounted value of your outstanding invoices to you in advance. We then handle the collections process and ensure that all outstanding invoices are paid in full. Because many small businesses haven't had the time to build a good credit history or credit score, small business owners find themselves with little option but to use their personal savings or salary (often for months at a time) to cover expenses when they run into cash flow problems. A constant lack of positive cash working capital results in a perpetuating cycle that results in a credit score that is never able to be built up to the required level to obtain a loan when it is needed most. Factoring can provide you with the funds you need immediately as opposed to waiting months at a time for your customers to settle their outstanding invoices and can give you the time you need to build up your credit score. Small businesses have a small window to cover expenses such as payroll, operational expenses, marketing expenses, inventory, personal protective equipment, and other equipment. The availability of our factoring service will ensure that you have the funds available to cover these costs on time so that your business's growth potential is not delayed unnecessarily. why would a business use factoring Contact Charter Capital today to find out more information about how we can assist you with obtaining funds with our factoring solutions.Like it? Share it! |