Invoice factoring is a short-term financing vehicle that makes operating businesses with long revenue cycles â€“ hospitals, temporary agencies, IT agencies and commercial printers â€“ easier.
Invoice factoring allows businesses to avoid the problem of slow-paying clients. As long as the business has positive operating cash flow, invoice factoring can be used as an alternative.
Get Cash Quickly With Invoice Factoring In Atlanta
Invoice factoring is a convenient way to get the cash your businessÂ needs â€“ quickly, without the challenges of financing that can come with banks. There is no debt to repay or financing to arrange.
Â Here’s how it works: Let’s say your company gets paid by invoice by clients every 60 days. A factoring companyÂ would purchase aÂ companyâ€™s invoices at a discount.
Now, instead of the company waiting for months for the client to payÂ the invoice, the company gets immediate cash and access to working capital.
The Benefits Of Invoice Factoring
Factoring is a fast, easy and flexible way to improveÂ cash flow and generate working capital.
It’s not new: Invoice factoring has existed for centuries and is one of the oldest forms of financing in the world.Â
Invoice factoring has exploded in popularity in recent months as banks have cut off access to funding to even more established and credit-worthy customers.
It’s a great tool for businesses who need cash to expand.