How to use factoring to save your business
Being your own boss is great until cash-flow problems threaten the survival of your business. A recent study by the U.S bank attributes the failure of 82% of small businesses and startups to cash flow problems. However, factoring can save your business.
If you don’t have enough cash in your business to cover all your bills while you are waiting for your clients and/or customers to pay outstanding invoices, a factoring company can help you meet that challenge. See how to use factoring to save your business here.
Here’s how factoring works:
Perhaps you have outstanding invoices of $10,000. You hand these outstanding invoices over to a factoring company that charges you a fee of 2-3%. The factoring company will now immediately pay you 90% of that invoice less their 2-3% fee ($1000). So you get the cash due on your invoices immediately to cover your business expenses— but you just get less of it.
Kore Capital Corporation is a reputable factoring company can help you successfully keep your business afloat, despite cash flow problems, get in touch with us today. Call 301.307.5091 or contact us today.