4 No-Brainer Reasons to Factor Invoices – November 7, 2018

Is your business having cash flow challenges? Do you struggle every month to make payroll and pay bills? Are you turning new business away?

If so, invoice factoring may be the answer. The longer your customer takes to pay their invoices, the more it affects your business. Turn your accounts receivables into working capital for your company by factoring your invoices and receive cash almost immediately.

Here are four reasons to consider factoring your accounts receivable:


1. Accelerate cash flow. Most companies take 30, 60 or even 90 days to pay invoices, which means you’re left waiting on those funds to make payroll, hire employees or accept new orders. By factoring your invoices, you’ll have funds available within 24 hours. Talk about stress relief!

 


2. Accept new orders. Any new opportunity for your business requires financing on some level. But without the cash flow or credit to fund those opportunities, there’s no doubt your business is missing out on new orders. Not only does factoring give you the working capital to accept new orders as they come in, it is also the debt-free way to fund your business because it’s not a loan. Instead of interest on a business loan, you’ll pay the factor a small percentage of the value of your invoice.

 


3. Gain financial freedom. Get ready to be in control again. Factoring gives you freedom and flexibility to make decisions that can have an immediate, positive impact on the growth of your company. By using accounts receivable financing, you’re not giving up equity in your company. You’re simply funding your open receivables based on your customers’ credit, not your own. Plus, with factoring, there are no rules or regulations on how you use the money. With no financial covenants to maintain, you get to decide how to run your business.

 


4. Overcome financial hurdles. Pay past-due taxes, complete an acquisition, meet payroll and cover other short-term financial obligations with invoice factoring. When you send your open invoices to a factoring partner you can trust, you get fast access to the cash you need to operate on a daily basis. Where a bank can take days or even weeks to approve a loan and get you financing, accounts receivable financing can get you cash often the same day, once you are a client. No more living “paycheck to paycheck” for your business.

Put simply, factoring saves you time and money. Are you ready to relieve the financial strain on your business? Contact Allied Affiliated Funding, a division of Axiom Bank, N.A., today, and get our team working for you.