ARTICLE: Choosing an Invoice Factoring Company
Why choose U.S. Financial for invoice factoring
In today’s economy companies are holding onto their cash as long as possible because their customers are doing the same thing. This creates a scenario that lengthens the amount of time where nearly everyone is getting their payments later and later. What this does is create a very tight cash flow situation where even though you company is making a nice profit you never have enough cash. With access to bank capital nearly non-existent this puts many firms in a cash flow crisis. This sequence of events is easily addressed by invoice factoring is what is driving the popularity of factoring today.
Invoice factoring is a great solution to this problem because it creates immediate cash with no new debt, no long bank forms and no restrictions on the cash. In essence we turn your account receivables into cash, cash that can be used for anything you wish, be it inventory, payroll, marketing, company expansion, etc. With factoring you no longer have thousands or hundreds of thousands of dollars tied up in receivables; instead you have ready cash to use for running your business.
Why choose U.S. Financial for invoice factoring
It makes a difference which company you choose for invoice factoring because just like any other industry no all companies are created equal. Here are the things you want to consider when choosing an invoice factoring company.
Non-Recourse Factoring vs Recourse Factoring
With non recourse factoring your business is not responsible for collection of the invoice. Once you have submitted the invoice to us and we have advanced you the funds for it then you no longer have liability for that invoice. As a non recourse factoring company we assume the liability and the risk for that invoice once we advance on it.
No upfront fees
Many factoring companies make a great deal of money by charging their customer all types of fees before they begin factoring. We do not charge your companies any up-front fees.
No long term contract
Our goal is to give you ready access to the cash tied up in your receivables for as long as you need it. If you find that you no longer need our services then you just discontinue our service, it’s that easy. Although that being said there are plenty of factoring companies out there that will try to get you to sign a contract that obligates you for 1 year, 2 years or even longer.
Simple contract and simple application
Our application is a simple one page form and is usually all that is required for approval. Also, our factoring contract is laid out in simple terms and does not include any hidden charges.
No personal guarantee required
We do not require a personal guarantee for the invoices we fund.
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