Invoice factoring can be a key instrument in business turnaround strategies for distressed companies. Not only does it expedite cash flow, it can also be leveraged to create new competitive advantages for struggling organizations by enabling them to extend more generous payment terms to customers.
Plus, since factoring invoices enables an organization to use its own resources to resolve cash flow challenges, it doesn’t result in additional debt on an organization’s balance sheet, nor does it leverage organizational assets except for the actual customer invoices the business chooses to factor.
Here’s how it works:
- Day One – Generate a customer invoice and factor it for a fee of 5% or lower of the invoice amount. Get free funding on an advance of up to 90% of the invoice amount as soon as the same or next business day.
Cash in hand (instead of on the accounts receivable ledger), a once-struggling company can meet daily payment obligations, cover payroll, make faster business reinvestments, negotiate supplier discounts, repair damaged vendor relationships and get itself back on a more solid financial footing.
- Day 30-45-90+ – After your customer remits payment, receive any amount held in reserve.
Take the first step and get a free, no-obligation quote for invoice factoring services by completing the form here or submitting an application for factoring online. You could go from approval to your first funding in hours and begin to experience the benefits expedited cash flow can provide.