Single invoice factoring might sound like an intimidating term, but it isn’t as complex as you think. Factoring is best defined as asset-oriented financing that empowers businesses to obtain the working capital required to operate their business. Yet the vast majority of financing companies responsible for factoring invoices use long-term contractual agreements in which firms are forced to regularly provided receivables to obtain needed working capital.
Single invoice factoring solves this problem by permitting a business to factor invoices one-by-one instead of tying the business to arrangements across posterity. This is a simple method of financing that lets a company proactively take control of its financing needs. In a nutshell, single invoice factoring provides a business with cash for pending accounts receivables so it can make headway as necessary.
Single invoice factoring merely requires the submission of a business’s receivables that it desires an advance on. The account debtor’s history is reviewed and an advance close to the full value of the open invoice amount is supplied. This is the rapid influx of capital every business needs to make meaningful progress. Though an administration fee and effective rate placed on the cash advance are applied, they are nominal.
This process empowers a business owner or manager to factor invoices exactly when desired. It does not force a company to factor across a full customer base. Rather, it allows for a timely account-by-account approach that significantly increases financial flexibility.
Modern economic challenges make it quite difficult to manage cash flow. If your business does not have immediate access to capital, you will undoubtedly miss out on numerous opportunities to expand your customer base, add to your inventory or acquire business-boosting supplies, workers, etc. Single invoice factoring frees up as much capital as possible to keep your operations fully financed. This is the perfect means of boosting your cash position. Adopt single invoice factoring and you’ll never endure a cash flow problem that prevents you from seizing an opportunity.
Oftentimes, businesses are left in financial limbo as they await a large payment from a customer. The business needs that payment right away to take advantage of market opportunities yet it often takes weeks or months longer than anticipated to receive the money. Single invoice factoring solves this lag by providing immediate cash, empowering the business owner to grow his business without waiting for customers to pony up money owed. While other businesses wait for their slow-paying customers to make good on payments, those that take advantage of single invoice factoring enjoy an incredible financial edge that lets them expand their footprint without delay. After all, timing is everything.
Don’t let unpaid invoices slow the progress of your business. MY Company Funding eliminates the challenges of unpaid or slowly-paid accounts receivable with single invoice factoring and other business financing options. Our aim is to help you rapidly expand your business so it can reach its potential. Reach out to us today to learn more about our business financing solutions.