Receivables Factoring is a financing solution–you probably know that. But is it a short-term or a long-term solution? Today we give you the lowdown on the best ways to use Factoring for your business.
Is Factoring a Short-Term or Long-Term Solution?
Let’s begin by answering the question in the title: is Factoring of accounts receivable a short-term or long-term financing solution?
The answer is that Factoring can be both a short-term or a long-term tool; that’s what makes it such a powerful solution.
As you may remember, Factoring your accounts receivable means selling them to a factor who collects them from your clients in exchange for a small fee, freeing you from the hassle of having to wait 30 to 90 days to get paid.
Now let’s take a look at how you can take advantage of this simple principle to solve many of your business’s short-term and long-term needs.
Factoring as a Short-Term Solution
Just think of all the scenarios where your business may need fast cash. There are many of them, right? Here’s a quick list:
- Sudden cash shortfall
- Periods of fast growth
- Business opportunities that come up unexpectedly
- Supplier discounts
- Unexpected expenses
In all these situations, Factoring of Accounts Receivable is a quick a reliable solution that helps your business meet its goals.
Factoring as a Long-Term Solution
While Factoring is a lifesaver in all the situations described above, its utility goes beyond the most pressing needs of your business.
Think, for example, of the clients who are otherwise reliable but are slow to pay. Factoring their invoices is a smart way of maintaining a good, long-term relationship with those clients without having to suffer on the cash flow front.
When you choose ACS Factors as your Factoring partner, you get the flexibility to take advantage of Factoring either as a short-term or long-term solution.
With month-to-month deals, no minimum funding fee, and funding limits that are easy to increase, ACS Factors allows you to leverage the power of Factoring to grow your business regardless of the challenge ahead of you.
ACS Factors: We Turn Your Invoices Into Immediate Cash
At ACS Factors, our mission is to help you get the capital you need to move your business forward regardless of your industry or the size of your organization.
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.
Reach out today by email (email@example.com) telephone (909-946-5599), or through our social media accounts on Facebook, Twitter, and YouTube, and start converting your accounts receivable into cash today!