Top 8 Benefits of Factoring Invoices
When speed is a competitive advantage, invoice factoring is a source of competitive advantage. Invoice factoring with Swift Funding Solutions has 8 key benefits:
Fast & Easy Access to Cash
Businesses need cash to operate yet cash flow can be restricted by invoice payment rate. When a business needs to pay suppliers, fund payroll, or pay utilities but customers are not paying invoices promptly, they can face restricted cash flow. This is especially true when lengthy credit periods are extended to customers or debtors fail to pay according to terms. Invoice financing can supply that cash minus a reasonable fee to escape the hassles of traditional bank loans that can take weeks to months.
Factoring is not a loan and is not a liability. This means no monthly payments and a more attractive balance sheet!
Factoring offers flexible terms with no contract or monthly minimums. You will select the invoices to factor. This is designed to grow with your business because as your sales grow so does your access to additional funding.
Invoice factoring fees are reasonable and almost always beat bank loan terms. Fees vary based upon industry, invoice profile, rates, creditworthiness, and receivables aging. To find out your exact rate, you should fill out an application.
It’s entirely up to you how the funds are used. We do not stipulate how to use the funds and have no requirements to purchase anything.
Reduce Bad Debt Exposure
Late payments and bad debt can ruin a company. Even taking legal action as a last resort to collect the bad debt is a costly proposition that can take months and might not yield any returns. You can avoid this outcome with a professional factoring company that has professionals dedicated to handling debtors who are likely to account for bad debts.
Professional Receivable Management
Factoring frees us management time dedicated to collecting on outstanding debt. With professional receivable management, managers can focus on what their business needs and dedicate their core competencies for developing strategy, marketing, or anything other than collecting receivables.
Businesses require cash to grow and there are many reasons why factoring can help with growth strategy. Factoring promotes growth in several significant ways:
- allows for business leaders to focus on core competencies rather than collecting debt
- helps businesses extend credit to loyal customers that need credit facilities
- helps businesses cover supply expenses to avoid constraints
- allows for business leaders to focus on marketing rather than managing creditors
- provides immediate cash for funding growth opportunities without debt
Have Questions? Get Answers.
You might be cash-strapped and interested yet the questions are mounting if invoice factoring is right for your business. Please read our Frequently Asked Questions.
Is Invoice Factoring Right For My Business?
Invoice factoring is an excellent strategy for many businesses across a variety of sectors. Collecting invoice payments is not only a labor-intensive process but it can strangle a business of the cash it needs now. If you want to dedicate fewer resources toward debt collection and access cash on those invoices immediately, invoice factoring can help your business.