What are the benefits of factoring receivables?
Faster cash flow might be the main benefit of factoring receivables, but it’s not the only benefit this financing tool has to offer.
Factoring can help you grow your business more quickly in many ways.
Creating faster, more consistent cash flow is the primary benefit clients seek when they factor invoices, but they may do so to enjoy many different benefits of factoring; such as:
- Freeing up working capital needed for business growth initiatives
- Leveraging improved cash flow for better terms with suppliers
- Offering customers more generous terms as a competitive advantage
- Unlocking the working capital needed to take on larger accounts or big orders
- Eliminating the negative consequences of slow-paying customers
- Improved ability to meet operating expenses and payroll
- Funding capital expenditures like equipment purchases, repairs, renovation or expansion
Nearly any type of B2B (business-to-business) seller may be eligible to access the benefits of factoring receivables, including those that invoice customers for payment as well as other business models, such as manufacturers and third party sellers whose goods or services are sold through ecommerce retail sites, app stores and other resellers.
Contact us using the quick quote form here or call us at 855-882-6772 for more information about factoring receivables or to get a free, no-risk quote.