Instead of waiting for customers to pay, struggling businesses that factor invoices can reinvest in their organization more quickly, stabilize cash flow and focus on activities that can help their business recover and grow.
Invoice factoring speeds up organizational cash flow by unlocking the working capital tied up in customer invoices, which is why many turnaround consultants recommend factoring to their clients. Instead of waiting for customers to pay, businesses that factor can get free same day funding of up to 90% of an invoice on the same day the invoice is generated.
Invoice factoring could be an ideal financing tool to use during a transitional period, allowing a business to create more consistent cash flow, pledging only accounts receivable as security interest. Expedited cash flow can enable a struggling business to:
- More readily cover operating, payroll and supplier obligations
- Make installment payments
- Negotiate supplier discounts
- Protect or repair vendor relationships
- Keep key suppliers on board
- Protect the brand’s reputation with employees, customers and vendors
Get a free, no-obligation quote for invoice factoring services by applying online. Factoring clients can go from approval to their first funding in hours and immediately speed up cash flow as part of a turnaround strategy.