Why You Need to Use Factoring to Grow Your Business

Growing your business can take a lot of time, hard work and money. If you’re looking to increase your cash and find flexible financing to help your business grow, discover how factoring can help. This competitive financing strategy can be used by all types of businesses, whether small or large, to receive the working capital they need. Discover how you can benefit from the great financing option.


Unlike bank loans, which require an extensive application and long wait times, factoring can help you receive cash in just a few days. This payment option works by using your accounts receivables as collateral. You’ll never have to wait up to 90 days to receive payment again. Get your cash quickly and let your lender wait for the payment to be processed months later. Quick cash isn’t just important for impatient business owners, it gives you the working capital you need to respond flexibly in day-to-day crises and opportunities.


However, factoring typically takes a portion out of your accounts receivables. Your invoice will arrive in a few days rather than a few months, but will typically be smaller than the amount you would have received later on. On the other hand, money today is worth more than money later. You’ll be able to keep your business flexible with this competitive option.


If you’re a small business owner, you may not know what expenses will come up throughout the month. From broken machinery to unexpected investment opportunities, small business owners have a multitude of unexpected reasons to have working capital on hand. This financing option allows you to receive payments immediately and reinvest that money into your small business.


Have you ever had an uncomfortable conversation about late payments with one of your customers? By signing over your invoices, your lender will typically handle the leg work of ensuring invoices are promptly paid. This not only saves you time while waiting for an invoice to be due, but also the time it takes to remind customers of upcoming or late payments.


Choose factoring for a flexible alternative to traditional loans, and a low-interest alternative to lines of credit or business credit cards. This competitive financing option isn’t for everyone, but if you struggle with extended pay periods or late invoices, consider how this competitive strategy can help your business grow. Whether you’re a small business owner or the CEO of a large corporation, it’s critical to have access to flexible working capital at any time throughout the year.

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