If you own a company that sell products or services to commercial customers or government, you have to be familiar with the maxim-hurry and wait. That’s what you always do after delivering your services. You hurry up and wait up to 60 days to get your invoice be paid. In the meantime, you still must cover rent, supplier payment and staff salaries.
But this is a big challenge if you are a business owner. This can slow down your business growth, significantly. Why? Well, can you take a big order and afford to wait a month to get paid? Can you afford to buy the supllies, pay employee, cover rent? Therefore, this is a great challenge. And in some cases, this push you out of business.
However, when faced with financial challenges, what will a business owner do? Most of them will go to the bank, and hoping for a business loan. But business loans are very hard to get and not very flexible. Plus, the bank give loans based on your business past rather than your future opportunity. Many times, what you need is a financing product that will be concentrated on your true sales potential. And the product is invoice factoring.
Invoice factoring eliminates the 60 days payment wait, providing you with the funds right after you invoice your customer.Imagine this : you deliver your products or service to your customer. And then, instead of waiting up to 60 days to get paid, now you get paid in 2 days. How fast can you grow then? How many client can you take on?
And how does the factoring work? Well, it’s very simple. Once you have sent your product, you send an invoice for your customers and a copy to the factoring company. The factoring companies advances you most a substantial portion of your invoice, usually within one day.
Factoring company’s advances give you the breathing space you want and the money you need to pay operating expenses and take new opportunities. This enable you to grow your business. Once your customers pay their invoice to factoring companies, the transaction is completed.
Factoring is so easy to obtain. The main requirements is that you do business with solid credit worthy customers. So if you need the financing and do the business with greater clients, consider to factoring invoice.