For many, invoice factoring remains either unknown or stigmatized. Unfortunately this funding mechanism which has been around for hundreds of years has been under utilized in situations that might be the best reason for using it. Like all forms of commercial finance, you want to be careful to use the right tool for the job at hand.
With invoice financing the best case is for when a company is in a steep growth mode. The ability for conventional lending to anticipate this growth while being disconnected to its historical financial statements may be difficult. With factoring the decision to fund is primarily on the creditworthiness of the customer. This makes qualifying for factoring rather easy – as long as you have completed work from creditworthy customers. And the factor will make that determination up front with you before you get too involved with a deadbeat customer.
There are many benefits to funding a company by factoring invoices. We have been covering them here since 2005. But if you are not sure if factoring is right for your business call us today and find out yourself how easy the process is – 888-681-0080