Why invoice factoring is a great way to fund your company’s growth
Invoice factoring, or accounts receivable factoring, is not just a fast and convenient way to solve temporary cash-flow problems. (Cash flow problems are all too common among small businesses). Invoice factoring is also an extremely helpful tool when it comes to funding the growth of your business. While many people call upon a factoring company like Kore Capital to help them out of a tight spot, we can actually offer assistance in a longer-term, strategic sense as well. You don’t want your business merely to survive; you want it to thrive—and invoice factoring can help!
Invoice factoring frees up working capital
Of course, you have a vision for your business, and hopefully, you have distilled this vision into realistic, measurable goals. What is the key to meeting those goals? Your product, staff and business plan, and other factors are all important, but without a good flow of working capital, these can’t be properly mobilized.
For small businesses, working capital is not always readily available. As a small company in the first few years of operation, you are probably just managing to cover costs and keep business flowing from month to month. This doesn’t leave any funding for growth.
Without working capital, you can’t invest in more infrastructure. You may even struggle to take advantage of expansion opportunities and new projects. You need to access working capital somehow. You could go to your bank and get a loan, but this comes with several drawbacks. Firstly, it takes time. Secondly, you may not get approval, depending on your credit history and other factors. Thirdly, a loan is a debt. And debt reflects as such on your balance sheet, and must be repaid with interest.
Invoice factoring is a far easier way to access working capital. The funds don’t come from a loan, but rather from an advance on your own accounts receivable. You don’t have to pay interest. And, your credit history is not a consideration. You can get the cash you need very quickly.
Kore Capital is a business financing solutions provider. We can offer cash flow solutions such as invoice factoring to help you access working capital and grow your business. Contact us for more information.