Invoice Factoring Articles:
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ARTICLE: Why Companies Are Factoring
Why do companies use invoice factoring?
Factoring is used by all types of industries and all sizes of companies to aid them in the management of their working capital. In today’s business environment firms are holding onto their cash as long as possible before paying their invoices. This has created a domino effect which means that invoices that were normally being paid promptly are now being paid in 45, 60 or even 90 days. This lag time puts a tremendous burden on your firm because in that lag time you still have to pay rent, payroll, inventory and all your other business expenses timely. This scenario has made invoice factoring the choice for millions of customers with the biggest reason being the ability to know precisely when you will be getting paid and thus being able to budget funds accordingly.
Invoice Factoring pays the majority of the amount of your invoices on the day after you create them, thus preventing you from having to wait “for the check in the mail”. By having immediate access to your cash you can ensure you have a steady, predictable flow of cash to run and grow your business. Many times companies that employ invoice factoring find that they can take on larger orders and larger customers than when they were guessing about their cash flow.
Some of the reasons companies turn to us for invoice factoring:
- They have been turned down by their bank
- The company has exhausted all borrowing from their bank
- The firm does not want to complete the long and complicated bank financing process
- Firm wants cash but does not want restrictions on the use of the funds
- Company does not want to take on any (or more) debt
- Companies find the invoice factoring process easy to use and very affordable
- They find they are able to manage their business much easier with predictable cash flow
- Many companies are able to grow their business much quicker and easier
- Companies like knowing exactly when they will be paid
The requirements for your company to use invoice factoring:
In general to use invoice factoring your company must be selling to other businesses or the government, have creditworthy customers and being factoring a minimum of $50,000 per month. If you fit these criteria and would like to explore factoring then call us at: 888-581-5990.
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Next Day Payment On Invoices |
Invoice Factoring Vs Financing |
Apply For Factoring Now! |
| Submit your invoices and receive funds the next day. There are no restrictions on the funds and no lengthy loan forms to complete. Use invoice factoring with U.S. Financial today. |
Invoice factoring can be a better option than bank financing for several reasons. Invoice factoring is much less strict on credit, is available to start-ups and we do not put a blanket lien on all your assets like banks do. Click below for more advantages. |
Get started with invoice factoring by faxing our one page application to us.
- One page application
- Fax to 614-573-7155
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Call U.S. Financial to get invoice factoring for your company: 888-581-5990