If you are a small business owner, chances are that you have researched some financing options and may be wondering whether invoice factoring is a good idea for your business.
Well, wonder no more. Today we’ll help you figure out whether Factoring is a good fit for your organization.
Do You Need Money Quickly?
Yes, we know: everybody needs money quickly. But there are different levels of urgency. Needing money to carry out a long-term plan that doesn’t impact your company’s ability to function here and now it’s one thing. Facing a cash-flow gap that may prevent you from paying providers or buying raw materials is an entirely different situation that calls for a financing solution that’s more agile than, say, a bank loan.
If the second scenario described above sounds familiar, then Invoice Factoring is an option you should consider. When you factor your unpaid invoices, you sell them to a company, or Factor, that pays you immediately and takes care of the collection process in exchange for a small fee. This way you get the quick cash you need without having to wait 30 to 90 days for your customers to pay you.
Do You Have Slow-Paying Clients?
Many companies have clients who are altogether reliable but slow to pay. And while some organizations can live with that, slow-paying clients can contribute to creating cash crunches that compromise your day-to-day operations and your ability to pursue new business opportunities.
If you have clients who are slow to pay you, then Factoring could be a great fit for your organization. You can decide to factor those invoices and enjoy the peace of mind of knowing that you have enough cash on hand to manage your business, with the added advantage of not having to deal with the resource-consuming collection process.
Have You Determined That a Bank Loan Doesn’t Work for You?
In the minds of many people, financing is synonymous with bank loans. But while popular, this option isn’t right for everybody for a number of reasons:
- Taking out a bank loan is a long, complicated process
- New companies don’t have the necessary credit history
- You may not meet credit score requirements
- A bank loan creates debt, which you may prefer to avoid
If one or more of the above statements apply to you, then Factoring is a financing alternative that may work for you. Factoring offers a fast approval process where your credit score and credit history don’t play a central role. Additionally, when you choose factoring, you don’t incur debt because you are selling something that already belongs to you—your invoices.
ACS Factors Helps You Turn Your Invoices Into Immediate Cash
At ACS Factors, we help you get the capital you need to move your business forward. We are located in Upland, California, and have many clients in the distribution and logistics corridor which includes Ontario, Riverside, Fontana, Jurupa Valley, and Moreno Valley.
We take Factoring to the next level with fast approval times, no deposit or application fees, easy-to-increase funding limits, no minimum funding, and more!
Reach out today by email (firstname.lastname@example.org) telephone (909-946-5599), or through our social media accounts on Facebook, Twitter, and YouTube, and start converting your accounts receivable into cash today!