Invoice Factoring for Software Development Companies
For software business owners, expenses like equipment, payroll, etc. can add up quickly. These costs can be unexpected, or higher than anticipated.
If you are one of these software development company business owners, you know how important it is to take new opportunities when you get them to beat out the competition. Taking these opportunities is the difference between failure and success.
Factoring for technology companies, such as software development, is a great option to bridge the gap between slow paying customers and strengthen your cash flow.
Benefits of Factoring
Especially if you’re a smaller or newer software company, having the cash to finance new projects and pay employees on time is probably a challenge. It’s a good problem to have though because it means you’re taking advantage of the opportunity to grow you business. The advantages of financing through invoice factoring are:
- Simple, straightforward application
- Easy approval – based on your customers creditworthiness, not yours
- Small businesses or startups can be approved
- Does not create any debt for yourself or your business
- Gives you the money to hire/pay employees or meet operating costs
Get a Quote for Your Software Development Company
The Factoring Process for Software Development Businesses
The steps to invoice factoring are simple and straightforward, which is why it’s a popular financing option for businesses in the tech industry. 
1. Get the best factoring company for a software development company with Factor Finders.
2. Submit your invoices to the factoring company.
3. Receive the cash advance, minus a small percentage (the reserve), to meet payroll or cover other expenses.
4. Your customers will pay the factoring company on their usual payment terms.
5. The factor releases the reserve back to you, minus a small factoring fee.