There are a number of business conditions when invoice factoring makes the most sense. Factoring is the ultimate solution for cash flow issues, but it may not be for everyone. How do you know when factoring is the best solution for your business at the present moment?
When Invoice Factoring Makes the Most Sense
Ask yourself the following questions, to help you to decide if this business financing solution can benefit your business at this point in time.
Do You Offer Payment Terms?
Factoring is perfect for businesses that want to offer their customers payment terms. It will give your company access to quick cash while you wait for your customers to pay off their invoices. You can offer your customers or clients 30, 60, or 90-day payment terms which will help them to gain your trust and give them time to pay off your invoice, without worrying about running out of funds during your projects.
Do Your Customers Or Clients Take Ages To Pay You?
It can be frustrating waiting for your invoices to be paid. You’ll probably have bills and staff to pay. If your clients take ages to pay you, factoring will help you to gain cash quickly. You can use the cash to pay off bills and process your payroll so you don’t fall behind on your business expenses.
Do You Need Funding To Grow Your Business?
Factoring solutions are continuously available to you as long as your clients have good credit. It gives you access to quick funding that can help you to keep your business growing and prevent any delays with its growth.
Do You Want Funding Without Paying Off Long-Term Loans?
Term loans can often serve as an effective financing tool for small business. However if your business outgrows the term loan that could stifle your growth. Factoring facilities are easy to scale, providing business owners with the cash required to continue to scale their companies.
Anyone can benefit from factoring solutions. As long as your customers or clients have a good credit history and your business follows legal compliances, factoring can be the solution to all of your cash flow issues.
For factoring solutions that are tailored to your business, give Kore Capital a call today!