Many small business owners believe it’s difficult to expand and compete with the larger companies in their industry. As soon as they take one step forward, they take another step back because clients default on their payments.
Small companies can’t afford to wait months for payments to be made, and they need to access their cash to keep providing their service and grow their business.
Factoring companies may be the solution. These companies pay you instantly for any outstanding invoices. By factoring receivables your business can grow because you have steady incoming capital.
Here’s how to quickly recoup funds to fuel your business growth.
You Won’t Get Into Debt
Many entrepreneurs and business owners choose loans, but you’ll end up in debt because you’re borrowing money you don’t have. You also end up paying even more money back than you borrowed in the first place.
Factoring receivables won’t give you debt because the money you receive is rightfully yours. Your business can grow because you don’t have big future repayments holding you back.
Whether it’s buying a harvester from AKRS Equipment or investing in new software for client management, you know you’re investing your own funds that don’t need to be paid back.
You Get Your Money Instantly
You’ll also receive your money instantly. There are no lengthy application processes, so you can get your cash within 24 hours from most factoring companies.
You Save Money
Factoring receivables has lower overhead costs because the factoring companies deal with the billing documents and collecting procedures. Your resources are freed up and can be used on more profitable attributes of your company.
You also get better deals on supplies to serve your business’s day-to-day tasks, such as fuel for freight companies. You have an improved cash flow and can buy in bulk.
You Can Handle Larger Orders
Through factoring receivables, you can take on larger orders. Through the fast and consistent cash provided by factoring companies, you have the funds to deal with these big orders.
In the past, you may have had to turn down clients with big orders because of lack of money. Technically, you do have the money for these big jobs, but because clients don’t pay on time, you don’t have the physical access to the money you require.
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