A challenge every business faces is getting paid on time for products or services already provided. Billing and invoicing for your services and getting paid in a timely manner is important as it helps you maintain a good cash flow and be able to continue to meet your own financial obligations, whether to your vendors or suppliers, employees and others that your pay.
Instead of sending the invoice data of your company to a third-party collection agency, only to receive pennies on the dollar in return, consider how invoice factoring may help you get paid quickly. Invoice factoring may be a solution that provides your business with the best stop-gap way to ease the burden of invoice slow-pay and keep your business financially viable.
The process of invoice factoring works for you immediately. An intermediary, typically a bank, acts as a guarantor for the amount of the invoice, providing you with upfront cash of a fixed percentage within hours of delivery of the invoice. This amount is wired to your business account and gives you the working capital you need.
The remaining amount is collected by the intermediary and you receive the balance of the outstanding invoice, plus a small transactional or processing fee. Invoice factoring is as simple as placing a call to MY Company Funding and providing a copy of the invoice you generated. You’ll receive 70 to 90 percent of the invoice’s balance within hours.
Using invoice factoring as a way to obtain financing for your business is far more beneficial to you than obtaining a traditional bank loan, establishing a line of credit or sending unpaid invoices to a collection agency. Credit scores as low as 500 may be accepted for invoice factoring, which is not always the case with a traditional bank loan or line of credit. You are not required to provide financial statements or submit to ongoing monitoring. Simply complete a short application and await approval, which takes place within 24 hours. Once approved, you can use invoice factoring as little or as much as your business requires in order to keep the cash flowing into your company.
Columbus-based MY Company Funding is in the business of working with large and small companies to secure the funding they need. We work hard on your behalf to match you with the financing solution that is appropriate for your situation. Whether you need invoice financing to improve cash flow, financing for your equipment or access to short-term funds to improve your company’s working capital, we have solutions that are custom tailored to you.
At MY Company Funding, we offer solutions for short-term working capital loans that meet all types of credit, all the way down to a 500 FICO score! All you have to do is provide an application and bank statements, and within a short turnaround, you could be approved for the money you need. Have questions on working capital? Call us today at 740-917-4960.