The Basics of Invoice Factoring
Making goods and providing services often means that you are waiting for customers to pay on invoices for the cash you need for supplies, bills and salaries. This can strain your cash flow and prevent you from making seasonal or time-sensitive purchases you need to grow or thrive. When your cash flow is tight because of outstanding invoices for goods or services already delivered to customers, you can turn to factoring or accounts receivables financing to get some needed slack. This process gives you an advance on qualifying invoices, so you have the cash you need for working capital while the customer still has time to pay. What Are the Benefits? Not only does financing your accounts receivables give you cash when you need it, that you are already owed, but it can free your company from the burden of collecting on those invoices. The fees associated are usually lower than the interest rate on a loan and the process has an easier application process. You can even apply online and get t...