Invoice factoring allows business owners to turn their unpaid invoices into working capital. For many, factoring is a way to plug up any short-term cash flow gaps due to anything from unexpected equipment repairs to filling large orders. But did you know that factoring can also be a long-term helping hand for small businesses looking to grow? Here’s how:
1. Factoring helps even out cash flow.
Cash flow is one of the biggest problems many small and medium-sized businesses face, especially ones that are just starting up. Wait 30, 60, or 90 days for a client to pay their invoice can cause dips in cash flow, leaving small business owners strapped for the working capital they need in order to run their business.
Invoice factoring offers a way to manage those cash flow gaps. It allows access to funds, pretty much immediately, for daily expenses like payroll or inventory. A balanced cash flow will put you in a good position to grow.
2. Factoring allows for more opportunities.
Taking on larger clients that would help boost your business big-time sounds great… until you realize how much it would cost. On top of the initial cost of being able to service these big clients, you might still have to wait the 60 days to receive payment. If you don’t the cash to cover this job AND your daily expenses while waiting for payment, you might feel like your business is never growing. That’s where invoice factoring comes in. You’ll be able to handle larger business-growing clients, your current customer-base, and daily expenses all at the same time.
3. factoring helps you invest for growth.
When you’re able to take control of short-term financial needs, you have more room to focus on investing in yourself. Whether that means upgrading or purchasing new equipment, opening a new location, or finding a nice office space is up to you.
When you factor with CoreFund Capital you choose transparency, experience, and superior customer service. Contact us today for more information on how we can help you invest in yourself.