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Top 7 Reasons to Use Invoice Factoring Financing

By Marco Terry

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Waiting up to 60 days to get paid by your commercial clients can have serious implications for your business. Unless your company has a cash cushion in the bank, slow paying clients can restrict your company's growth - or worse - drive you out of business. Invoice factoring is a financial tool that provides you with financing based on your strongest asset - your receivables from strong commercial customers.

  1. Invoice factoring solves the problem of having to wait up to 60 days to get paid by your clients. Factoring companies can provide you with a substantial advance on your slow paying invoices. This eliminates having to wait 30, 60 or even 90 days to get paid.

  2. Factoring financing provides you with funds to pay suppliers, meet payroll and leverage new opportunities. Invoice factoring enables you to cash on your invoices quickly, freeing up funds to pay your most important expenses.

  3. Factoring financing is easier to obtain than bank financing. As opposed to bank financing, most companies can get a factoring line in 5 to 10 days.

  4. Most invoice factoring companies will absorb the credit risk of doing business with your clients. This will protect you if your clients close their doors or go bankrupt.

  5. Invoice factoring is not considered debt, and thus does not show as a liability in your balance sheet.

  6. Invoice factoring lines have no arbitrary high limits. Your financing grows with your business.

  7. Factoring financing is available to new businesses and small businesses alike. The main requirement is that you have strong credit worthy clients.

About Marco Terry

Marco Terry owns Commercial Capital LLC, a provider of factoring [http://www.ccapital.net], invoice factoring, freight bill factoring and medical factoring. He can be reached at (866) 730 1922.

Source: https://Top7Business.com/?expert=Marco_Terry

Article Submitted On: April 12, 2006