If you’d like to get access to cash for your business without having to take out a traditional business loan, invoice factoring may be just the ticket for you. With invoice factoring, a factoring company would purchase your outstanding invoices at a discounted rate, and the factoring company then assumes responsibility for collecting on those invoices. In the meantime, you get immediate cash in your hands which you can use for any number of business purposes.

Invoice Factoring Benefits

There are a number of very appealing advantages that you can obtain through invoice factoring, as opposed to applying for a traditional bank loan. For instance, if you have been disapproved of a bank loan or your credit history is not the best, this will provide you with an alternative source of income that you can apply for.

Another huge advantage of invoice factoring is that you get paid immediately when a factoring company purchases your invoices. Bank loans would typically take one or two months to process, and by that time your business could have gone bankrupt. When you get immediate cash in your hands, you’ll have the flexibility to pay your suppliers, meet your payroll demands, and purchase inventory needed to conduct your business.

Unlike some types of loans, you can use money from invoice factoring for any purpose whatsoever, and that gives you a great deal of flexibility. Since this is not a loan, you never have any money to pay back, so there is no increase to your debt load.

Finally, invoice factoring can be a major boost toward growing your business. Many companies have been held back simply because their cash flow would not allow them to take advantage of business opportunities which promoted growth. When you have a stable cash flow arrangement, you’ll be in much better position to take advantage of opportunities which arise, and which will help to grow your business.

Considering Invoice Factoring? 

If you are considering the possibility of invoice factoring, we’d like to hear from you. At Simplicity Capital Finance, invoice factoring is one of many financial services we provide to businesses, and your company may be eligible to participate in this kind of program.