Authored by Phil Cohen
Cash flow interruptions are disruptive to businesses. When you do not have working capital, everything seems to be put on hold. There are certain industries where cash flow interruptions are more prevalent. Whether your industry has seasonal busy and slow seasons or you have clients who take weeks to pay, an interruption in funds is a stressful event. Working with a factoring company is a solution to your cash situation.
Basics of Invoice Factoring
To put it simply, invoice factoring is a cash advance on your outstanding invoices. You sell your unpaid invoices to a factoring company, which gives you a cash advance usually between 70-90% of the total. The rest of the money is put in a reserve account. The factoring company will take over collecting payments from the clients. Once all of the clients have resolved their invoices, the factoring company will release the rest of the funds to the business owner. There is a small factoring fee that will be removed from the final payout. Following application and document submission, most people are approved and receive cash within 24 hours. This is important when funds are needed immediately.
Factor Finders Connects You with Your Factor
Working with a factor broker like Factor Finders alleviates the hassle of finding a factoring company on your own. We have an expansive network of factors that work will a variety of industries. We will assess your business and situation before making a match with a factor. Because factoring is using your own funds, you do not need to worry about issues such as less-than-ideal credit or a new business. Even if you have previously been turned down for a traditional loan, you can still qualify for factoring.
Get In Touch with Factor Finders
Stop cash flow interruptions with invoice factoring. Contact Factor Finders today and we will respond within minutes. Get the cash you need quickly to keep your business on track.