What businesses use factoring services and what makes them qualify?

Invoice factoring is typically for businesses who do business to business (B2B) deals. Factors are typically more likely to lend to a business that is financially stable but might have a cash flow issue or needs extra money to grow. Most, if not all, businesses need to have consistent cash flow in order to grow and run smoothly.

The most common industries that utilize invoice factoring are:

●  Trucking and Transportation
●  Staffing
●  Distribution
●  Oil and Gas

What are some reasons why businesses use invoice factoring?

●  The want to expand and grow
●  The want or need for rebranding or moving locations
●  The business needs additional cash flow to make purchases
●  They want to avoid delayed payments

What are a few of the benefits that come along with factoring?

●  Improved cash flow almost immediately
●  Opened access to money normally tied up in accounts receivables
●  Factors take on collection duties
●  Having extra cash on hand to improve your business
●  Non-recourse factoring can provide a form of protection from bad debt
●  Factoring is an interest-free and debt-free funding option

For more information on invoice factoring, check out some more of our blog posts. To learn how to apply for invoice factoring, contact us today!

Post written by Senior Copywriter “Nikki Wakefield” of CoreFund Capital, LLC.