Invoice Factoring is a smart funding strategy that many small business owners are using to face the challenges of today’s business landscape and run their organizations more smoothly.
While Factoring can be a game changer for many businesses, owners sometimes hesitate to consider it as an option because they don’t have the right information at hand. That’s why we decided to answer the most common questions about Factoring your accounts receivable.
What Is Invoice Factoring?
Invoice Factoring is a funding strategy where you sell your accounts receivable, minus a small percentage of the invoice, to a company called Factor. You get the money immediately, while the Factor takes care of the collection process and gets paid from your client, usually within 30 to 60 days.
What Are the Benefits of Invoice Factoring?
Factoring your accounts receivable offers several benefits that in many cases can make a substantial difference for your business.
- Unlock money tied up unpaid invoices
- Ensure reliable cash flow
- Increase working capital
- Get more time to focus on your core business
- Outsource the collection process
- It’s not a loan, so you don’t incur debt
How Are Small Businesses Using Invoice Factoring?
Invoice Factoring can help you deal with some of the most daunting challenges that small business owners face every day. For example, you may be familiar with some of the following scenarios.
- Dealing with slow-paying customers
- A great alternative when a business doesn’t qualify for traditional funding
- Adjusting to seasonal changes in demand
- Taking on large jobs
- Running more shifts
- Getting better prices for vendors
- Paying suppliers
All in all, Factoring is flexible funding alternative that every small business owner should add to their financial toolkit.
If you are looking for a reliable, efficient Factoring company, then you are in the right place. At ACS Factors we are able to advance cash on receivables for companies anywhere in the U.S. offering many unique benefits.
- Same day funding on invoices
- MontH-to-month term deals
- No early termination fee
- No minimum
- Easy to increase
- Easy access to owner/CEO
- We take the credit risk if your customer cannot pay
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 (firstname.lastname@example.org), telephone (909-949-5599) or through our social media accounts on Facebook, Twitter and YouTube to learn more about the benefits of turning your invoices into immediate cash!