Accounts receivables (AR) are about as useful as a check you can’t cash out. Waiting to get your money is the name of the game in many industries, but that doesn’t mean it’s easy. But why shouldn’t you get that money sooner? It’s your money after all! Luckily, there is a way to get most of your money faster without having to wait for your clients. Find out why you should choose AR factoring for your business.
Remind Me Again, What Is Factoring?
Factoring is a pretty straightforward and simple concept. Basically, you take your accounts receivables and sell them to us. Once approved, at least 80% of your cash gets to you within the week. The remaining money, minus our service fee, is given once your client provides the payment in full. No longer do you have to wait weeks or months for your paycheck. But why should your company choose AR factoring in the first place? Well, there’s more than one reason, even if your company isn’t in a financial crisis.
So Why Should You Choose AR Factoring For Your Business?
There’s more than one reason to make the decision to factor. We receive clients who feel they don’t have the right reason to factor. And we always respond in the same way: there’s no wrong reason to factor! To dispel any concerns, let’s discuss a few fields and how factoring helps a business.
- Finance. We’ve covered an example of factoring in finance before. As a refresher, imagine your company supplies other businesses with products. However, that business doesn’t pay you for those supplies until a month later. Factoring that invoice enables you to grow faster and be more secure financially.
- Staffing. These sort of companies have a specific type of challenge. With a workforce that needs to be paid, payment occurs on a regular basis. But without the right funds, this puts the company in a tough spot. Factoring gets your money to you within the week to distribute.
- Information Technology (IT). Many IT companies bill on a 30, 60, or 90-day invoice. While this allows for an easier time for your clients, it’s plenty nerve-wracking for you! During this wait time, you’re expected to pay your bills and also your employees. Factoring these invoices gives you peace of mind and the resources to keep your lights on.
Discover The Benefits Of AR Factoring For Your Business
Ready to begin the factoring process? Apply today and see what heights your company is taken to. If you have any questions for us, please call 866.647.2680 or contact us online. We look forward to hearing from you.