Most companies find that customers take a while to pay. Even a rapidly growing company with a spectacular product or service will find itself in trouble if its customers do not pay promptly. However, there is a solution in the form of invoice factoring. Invoice factoring empowers companies to make headway while waiting for customers to pony up the money they owe. The best part about invoice factoring is that it won’t bust your budget.
Sweat the Small Stuff When Researching Invoice Factoring Services
If you test the
invoice factoring waters, you might find that some of these services are fairly expensive. However, some affordable invoice factoring services are willing to help you keep your doors open and expand even when customers are slow to pay. Just be sure to examine the cost structure of these services to verify that they do not include hidden costs that balloon the real price well beyond the one initially advertised.
The true cost of an invoice factoring program is determined by the factoring rate, the advance and the time span of the factoring period. It is imperative that you understand each of these components in-depth. Otherwise, you won’t be able to figure out if the true cost of the plan is reasonable. Of particular importance is the factoring rate. Some companies float out low factoring rates that rise over time. Read the contract in its entirety to fully understand all of the details including the extra fees that might not have been specified in the initial proposal. Examples of such fees include credit reviews, minimums, overdue fees, mailing fees, invoice processing fees, lockbox fees, etc. Some of these fees are necessary while others are tacked on to make that much more money from the client.
Affordable Invoice Factoring
Though it might seem like some invoice factoring companies lay traps to heighten the true cost of their services, there are some low-cost options out there. The best factoring companies decrease costs and pass on the savings to customers. Obtain as much information as you can before making a decision. Also, consider whether you can truly afford
not factoring your invoices. While factoring invoices bear a cost, waiting months on end for customers to pay might put you out of business.
The bottom line is that every business needs cash. It might not be possible to obtain a loan or strong-arm clients into paying sooner rather than later. Even if you obtain a loan, you will have to pay it back by a deadline with interest tacked on. Furthermore, loans have maximums. Invoice factoring provides positive cash flow without delay. If you look hard enough, you will find an affordable invoice factoring provider that empowers your company to gain access to
working capital without the burden of debt. The beauty of invoice factoring is that it provides fast cash that keeps the doors open and the business functioning like a well-oiled machine. These benefits are well worth the minimal transaction fees. Such fees are much more affordable than waiting upwards of half a year or longer for customers to pay the money they owe.
My Company Funding is at Your Service
In the end, the question one must consider is not whether
invoice factoring is affordable but whether a business can afford not to make use of invoice factoring. The bottom line is that invoice factoring empowers a business to invest time and effort in the quest to grow rather than spend those resources on accounts receivable collection attempts. My Company Funding provides the low-cost invoice factoring your business needs and deserves. Reach out to us today at 740-917-4960 to learn more about our services.
