Distressed Companies Can Use Invoice Factoring as Part of a Business Turnaround Strategy

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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.

Invoice Factoring Speeds Up Business Cash Flow

Expediting cash flow could make the road to financial recovery easier and faster for your business.

1. APPLY

Apply and get a factoring agreement that is a good match to your business goals and preferences.

2. FACTOR INVOICES

Go from approval to your first funding in as little as 24-48 hours — or even faster — and use factoring to speed up cash flow.

3. SPEED UP CASH FLOW

Get free same or next day advances on factored invoices to expedite cash flow and grow your business faster.

Distressed companies can speed up cash flow by factoring invoices instead of waiting 30, 60, 90 days or longer for customers to pay.

Take the next step and request a free, no-obligation quote for receivables financing – you could go from approval to your first funding in hours.

Benefits of Factoring Invoices for Distressed Companies

Invoice factoring expedites cash flow by unlocking the working capital tied up in customer receivables. Almost any type of organization that extends payment terms and invoices its customers upon delivery of goods or services (including on-going services) can use invoice factoring to speed up cash flow.

Distressed companies can factor invoices and get immediate access to the money tied up in customer invoices without waiting for customers to pay. Expediting cash flow could make the road to financial recovery easier and faster for organizations having difficulty meeting their financial obligations.

Factoring invoices can play a crucial role in a business turnaround strategy. Expedited cash flow could enable a distressed company to:

  • Meet operational expenses or payroll more easily
  • Repair damaged relationships with vendors who have been waiting on payment
  • Negotiate supplier discounts
  • Make installment payments
  • Take on new business more quickly
  • Invest more quickly in marketing and growth activities
  • Appeal to strong customers who expect generous payment terms

There’s no cost and no risk to find out whether factoring could be of help to your company. Request a free, no-obligation invoice factoring proposal and get answers in 24 hours – or even faster.

Find out more about how distressed companies can use factoring as part of a business turnaround strategy.

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Stop chasing customer payments!

Speed up cash flow by factoring invoices instead of waiting 30, 60, 90 days or longer for customers to pay.

Invoice Factoring for Distressed Companies

Invoice Factoring for Distressed Companies

Our factoring clients come from many different industries where invoice factoring is commonly used to expedite cash flow, including:

  • Staffing and temporary employment agencies (security services, nursing, etc.)
  • Business consulting and B2B business services
  • Commercial cleaning and janitorial service providers
  • Trucking, transportation and logistics
  • Supply chain distributors and manufacturers
  • 3rd party sellers like Zulily vendors and Amazon merchants
  • Vendors selling through Costco, Wayfair, Walmart and other mass retailers
  • Textile, clothing, accessories and other wholesalers
  • Oil and gas (and all gas and oil field contractors)
  • Energy and utilities companies and contractors

And others – feel free to ask! Our team is ready to help with your business turnaround strategy, including tailoring a factoring proposal to meet the needs of your business and maximize the benefits of factoring. Here are some of the details our factoring clients enjoy:

  • No factoring minimums – factor only when you choose
  • No long term contracts – do what’s best for your business
  • Low factoring rates – factoring fee as low as 5% on small invoices and lower on larger balances
  • Competitive advances up to 90%
  • Free, fast funding
  • Great customer service with a knowledgeable account manager

Nearly any type of company that invoices customers for payment or waits more than 15 days or more to get paid after completing delivery of goods or fulfillment of services might be able to improve cash flow immediately by factoring invoices. Take the first step and request a no-cost, no-obligation receivables financing proposal today.

How the Invoice Factoring Process Works

How the Invoice Factoring Process Works

Invoices factored are typically funded on the same or next business day – up to 90% of the face value of the invoice, with the remainder placed in ‘reserve.’  For instance, let’s say that you are billing a customer in the amount of $12,000 but you want to access the funds without waiting weeks – or months – for your customer to pay.

Assuming a factoring fee of 5%, and an advance rate of 90%, here’s how it would work:

Day 1 – Generate $12,000 client invoice and factor it
 – Same Day Your company receives 90% advance of $10,800 by wire transfer or ACH
The factoring company earns 5% factoring fee of $600 – your all-in cost
Day 30+ Your company receives the $600 reserve amount after the invoice is paid, for a total of $11,400