In times of cash flow crisis, many businesses often don't have the time to weigh out their options and often resort to the quickest (and not the most ideal) financing solution to help cover their immediate financial obligations. However, many businesses aPosted by Clark Russo on June 14th, 2021 Factoring sounds more complicated than it is and is actually a simple and efficient way of settling your expenses fast. Small business invoice factoring entails selling your outstanding invoices to a factoring company in exchange for cash. All you need is a factoring account to set up an agreement with your factoring company who then buys your accounts receivable from you (less a discount amount). Factoring is not a loan and you are therefore not bound by interest rates. Factoring has so many added benefits for small businesses struggling to pay their expenses on time, these include: An immediate availability of funds that does not rely on the uncertainty of your customers paying their invoices on time. You can choose when you need to factor your invoices and how often you need to. small business invoice factoring As it's not considered a loan, your credit score is not a deciding factor in whether you get approved or not. You have the experience of professionals managing your accounts receivable process to ensure monies due are collected timeously and with minimum effort on your behalf. It gives you access to financial capital to invest in assets that will enable you to expand your business. It alleviates the pressure of maintaining a positive cash flow - this is a common headache for many businesses trying to gain a growth momentum. If you are experiencing hiccups in maintaining positive working capital Contact Charter Capital for a same-day funding solution.Like it? Share it! More by this author |