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5 Key Signs Your Business Needs Factoring Services

5 Key Signs Your Business Needs Factoring Services

Max 5 min read
Factoring services offer businesses a fundamental financial arrangement by permitting them to convert their accounts receivable into instant cash. This cycle includes selling invoices to a third party, known as a factor, in exchange for a small factoring fee.
When the factor checks the invoices and evaluates the clients’ reliability, they advance a large portion of the amount. Once they’ve collected their invoice, they settle the remaining balance minus their small fee. For businesses, this means more reliable income, less admin work, and more time to hit the road with loads.
But the big question is this: does your business need factoring services? In this post, we discussed 5 tell-tale signs that it’s time to partner with a factor like Factoring Express.

Signs Why Your Business Needs Factoring Services?

Factoring services can be invaluable for businesses facing cash flow challenges. Here are five key signs that your business may benefit from this service:

1. Cash Flow Problems

Cash flow is the soul of any business, but then and again, invoices can take 30 to 90 days to get paid. Factoring services can drastically reduce this delay by advancing a huge part of your invoice within 24 to 48 hours. This allows your business to meet its financial commitments like driver salaries, fuel costs, repairs, and so on.

2. Delayed Payments from Customers

If your clients’ delayed payments are already hurting your business operation, it’s time to consider hiring a factoring company. Instead of waiting and chasing payments from customers, you can receive your working capital in as little as 24 hours. This means you’ll enjoy a more predictable cash flow instead of being at the mercy of your client’s payment cycle alone.

3. Limited Access to Traditional Financing

Traditional funding choices like bank loans or credit extensions often require tedious paperwork and equally long approval periods. In contrast, factoring services are instantly available for qualifying invoices, with most being funded within 24 hours. This makes figuring a practical supporting option for businesses with restricted records or poor credit scores.

4. Seasonal Sales Fluctuations

Numerous businesses experience changes in client volume, which will directly affect income. During slow seasons, factoring services can give a consistent source of working capital by funding your pending invoices right away. This guarantees that your business has the financial capacity to cover expenses during the slump.

5. Opportunities for Growth

Capital is the most critical aspect of business growth. However, if business owners always have to wait for long payment cycles, they won’t have the financial capacity to take on new opportunities. For example, a trucking business may find it hard to buy new trucks or hire more drivers due to a lack of consistent funds.
In this case, a trucking factoring company can be a big help by buying your aging ARs for a small fee. This way, you’ll have the working capital to seek new opportunities for your business.

Why choose Factoring Express as your factoring partner?

Factoring Express is a tried and tested factoring company for trucking, healthcare, staffing, merchandise, and other businesses. Our huge funding capacity and flexible terms make us a smart choice for small to medium-sized companies.
Here are some of the reasons why many business owners partner with us to boost their cash flow:
  • Dependable Service. With us, you can get your account approved as fast as 24 hours. After that, you can start sending the invoices you want to factor, and we’ll fund it in just 24 to 48 hours for total convenience.
  • No long-term contracts. At Factoring Express, we give you the utmost flexibility and convenience of factoring. You can choose which invoices to factor and when — no long-term contracts or termination fees.
  • No hidden fees. We are 100% transparent with every dollar we charge you. After we’ve collected your invoice, we will settle the remaining balance minus our small fee. You can also see everything on our dashboard, so rest assured that we don’t impose hidden charges.
  • No excessive paperwork needed. Unlike business loans, where you have to prepare a ton of documentation and queue up in the bank, everything is online with Factoring Express. You can open your account today, send your invoices online, and receive the funding to your elected bank account – that simple!

Ready to unlock the benefits of factoring in your business?

If you want a steady cash flow and instant invoice funding without the stress of collecting payments, Factoring Express got you covered. We offer reliable factoring services, so you don’t have to wait 30, 60, or even 90 days just to receive payments from your customers.
With us, you can fund your outstanding invoices fast, so you can cover your operational expenses and plan your business growth. If you want to learn more about how factoring works for your business, contact Factoring Express today!
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Factoring can provide cash for fuel, repairs, insurance, other bills and help you grow your business.

Fill out the form to get your invoices

paid today

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your invoices paid today
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