Advantages of Invoice Factoring

What Are The Advantages of Factoring?

Whether you’re a small business owner or manage a large operation, factoring invoices can be a major asset for your B2B strategy. It offers benefits that other traditional learning options can’t provide, plus it is a more accessible solution for many businesses. Invoice factoring provides some important advantages for small businesses.

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Immediate Boost in Working Capital

Rather than having to wait 30, 60 or 90 days to get your invoices paid by your customers, you can typically collect payment in as little as 24 hours by the invoice factoring company. This gives your working capital an immediate boost and allows you to get back to business.

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Easy Approval

Applying for invoice factoring is much easier than getting a business loan from a bank. Getting a loan can prove out of reach for many businesses with limited collateral and a short financial history, whereas invoice factoring may be a viable option.

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Unlock Business Growth

Factoring your invoices helps your business unlock capital needed to finance growth without giving up equity. You can enjoy enhanced cash flow without sacrificing equity in your business or taking on unwanted debt.

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Easily Meet Business Expenses

Many businesses experience ebbs and flows which can be influenced by the economy or seasonal trends. With invoice factoring, your cash flow can be more consistent year-round, allowing you to more easily meet payroll and other business expenses.

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Outsource Collections

When you factor invoices, the factoring company handles collections. This saves you and your employees time and energy that you can devote to other tasks.