One of the biggest challenges facing a start-up is the management of cash flow. Start-ups and new businesses are low on working capital. And, taking a business loan may not be feasible for them. Kore Capital gives you reasons why your start-up should partner with an invoice factoring agency.
Start-ups do not have long financial histories
As a new business, you may be looking to secure a business loan from a bank. Though, chances are that they will ask you for your financial history to determine various aspects of your loan. However, if you are a start-up, you do not have an extensive financial history. This makes it difficult to secure a lucrative and affordable loan.
However, invoice factoring agencies do not need to analyse long financial histories of a business before providing adequate working capital. An invoice factoring company has the capacity to provide you with cash flow up to 96% with affordable rates on the outstanding invoice.
Quick turnaround times
Start-ups need working capital to keep the business afloat. With an invoice factoring company by your side, you can be rest assured you will receive the funds in 24 hours or less. Thus, you can avoid the long 30 to 90 days waiting periods which is typical for an invoicing process.
Working with larger clients
Partnering with an invoice factoring company provides you with adequate working capital to take on larger clients and orders. With the funding provided by a factoring agency, your start-up has the capability to take on several costs such as that of equipment, manpower, inventory, and the like.
Prevent additional debt
Being partners with an invoice factoring company ensures you are not stuck with additional debt as the funds they give you are those that are owed to your business in the first place.
For more information on how to secure a customized financing solution for your business needs, contact Kore Capital today!