With financing alternatives, it all comes down to a simple question: Why use them? If you are considering Invoice Factoring for your business, here are four solid reasons why you should take the plunge.
Get the Cash You Need
You know what it’s like: extending credit terms to your customers usually means waiting 30 to 90 days to get paid.
What if you could turn all those unpaid invoices into cash whenever you want? That would be a game-changer for sure, and that’s precisely what Invoice Factoring allows you to do.
Factoring your invoices means selling them to a Factoring company (also called Factor) who pays you immediately and then collects the invoices from your clients in exchange for a small fee. This way you stay cash flow positive at all times to solve immediate needs or pursue new opportunities.
This is without a doubt a very compelling reason to use invoice factoring. But there’s more.
As mentioned earlier, when you Factor your invoices, the Factoring company takes charge of collecting the invoices from your clients.
It’s no secret that the collection process can be extremely time-consuming, with endless calls often needed to deal with slow-paying clients. Factoring allows you to free up all that time and devote more resources to your core business.
So not only does factoring improve your cash flow, but it also takes the collection process off your plate so that you and your team can focus on reaching your goals.
Avoid Bad Debt
Bad debt occurs when the credit previously extended to a client becomes uncollectible. In other words, bad debt is receivables that your customers won’t be able to pay for whatever reason.
Needless to say, all business owners should try to steer clear of bad debt. One way of protecting yourself is by using invoice factoring, more specifically non-recourse Factoring.
When you work with a non-recourse Factoring company like ACS Factors, you limit the potential for bad debt because the Factor absorbs any unpaid invoices, shielding your company from all the risks that come with them.
Keep Control of Your Business
Cash is the fuel that keeps a business moving forward, so when a cash crunch happens business owners often take desperate measures and end up in debt or resort to giving up equity.
Both situations involve losing some degree of control over your business. That’s not the case with Invoice Factoring for a simple reason: you not taking debt but selling the receivables you already own.
By allowing you to avoid debt while keeping total control of your business, Invoice Factoring empowers you to achieve success on your own terms and with considerably less stress.
ACS Factors: We Help 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.
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!