When it comes to growing your business, steady capital is indispensable. However, with some clients taking days – or even weeks – to pay, many business owners like you may opt for yet another bank loan. But here’s the good news: there’s a better funding option with a 0% interest rate, minimal paperwork, and guaranteed cash within hours.
Sounds too good to be true? Well, that’s the advantage of selling invoices into a factor, a.k.a. invoice factoring. And in this post, we’ll tell you why it’s way better than bank loans and how it can help grow your business in the long run.
What is factoring for invoices?
Invoice factoring or factoring is a financial solution where a business sells its accounts receivable to a factor in exchange for a small fee. In turn, factors like Factoring Express will advance up to 97% of the invoice’s amount, and they will take over the collections process.
Take note that factoring invoices means you’ll get the amount tied to your A/Rs in as little as 24 hours. This way, you’ll have the working capital you need to cover business expenses and explore growth opportunities.
Once we’ve collected the invoice from your customer, we will send you the remaining balance minus our small service fee. You’ll receive instant cash with factoring payment, meaning you no longer have to wait for bank loan approvals!
Another good thing about factoring is it works across industries. In fact, here at Factoring Express, we specialize in factoring for trucking businesses, staffing, healthcare, and more. This makes invoice factoring a more flexible solution compared to traditional bank loans.
Why invoice factoring is better than bank loans
If you haven’t heard of or worked with invoice factors before, you’re probably wondering how they differ from trusty bank loans. You’ll be surprised to know that factoring might actually be the better alternative that your business needs right now. Here’s why:
1. Factoring doesn’t incur interest rates
You should know that factoring is not a type of loan or debt. Instead, you’re going to sell your invoices for a small fee in order to receive advances on the total amount. That means factoring won’t incur interest rates as bank loans do.
Instead, you’ll only pay one-time invoice factoring rates as payment to the factoring company’s service. Also, you don’t have to worry about regular payments and possible penalties.
2. You’ll receive funding within hours.
Business loans often take weeks to months to process. Worse, some business owners end up waiting only for their loan requests to be denied. This will create more financial strain on their business, especially if their future plans are reliant on the said loan.
So, instead of queueing up in the bank to take another loan, you can contact a factoring company like us instead. With us, your account can be approved within 24 hours, and you can start sending us invoices right after. Overall, you can receive funding on your very first invoice in as fast as 48 hours – from the initial application to approval.
3. It doesn’t entail tedious paperwork.
Banks often demand a lot of documents when you’re applying for a loan. While it will take you a lot of time and resources to comply with their requirements, it doesn’t guarantee that your loan will be approved.
Instead of spending hours preparing all the paperwork, you can opt for factoring to save yourself from the hassle. The best part is that as long as your invoices factored are eligible, you’ll get guaranteed funding.
4. A good credit score is not a requirement.
Here’s the best thing about our factoring services at Factoring Express: we evaluate your customer’s credit score, not yours.
So whether you have a low credit score or still recovering from a bad debt, you can get your invoices funded just the same. For us, what matters is that your invoiced customer has a good payment history. This is also a protection for your business by preventing recourse terms.
If your business needs funding but your credit score doesn’t qualify you for a bank loan, invoicing factoring would be the best solution.
5. No upper limits or caps
With bank loans, you can only borrow a maximum amount based on your credit score and other criteria that the lender defines. But with our factoring service, there are no minimums or maximums.
With Factoring Express, you can choose which invoices you want to sell whenever you want to. We keep everything flexible, so our factoring solutions can cater to your unique business needs. The invoice factoring cost might also be more affordable than interest rates.
You can choose to factor invoices from slow-paying clients and keep the rest under your in-house collections. The best part is that our funding grows with your business, thanks to our huge working capital.
6. Factoring offers predictable funding.
One of the main struggles when taking a bank loan is the uncertainty of whether you’re going to get approval or not. After waiting for weeks and months, you don’t have the confidence that your business will have the funding it needs.
This is where factoring comes in handy. Instead of waiting for another bank loan approval, you can sell your pending invoices for immediate cash. This way, you can also get your aging A/Rs moving, not to mention that you’ll be free from the responsibility of collecting the outstanding balances from your customers.
Ways an invoice factoring service can boost your business
Instead of going into another long-term debt or getting swamped with hefty interest rates, you can partner with an invoice factor like us. Here’s how our funding solutions help boost our clients’ businesses:
1. Predictable funding for predictable planning
One of the biggest perk factoring does for your business is improving your cash flow. And with improved and stable cash flow, you can plan your business growth with confidence.
This could include buying new equipment, hiring more staff, or opening another branch. Whatever it is, having the amount tied to your invoices released immediately will give you the financial capacity to realize your business plans.
2. Better vendor relationship
Many of our clients have struggled to pay their vendors and suppliers as they wait for customers to settle pending invoices. This creates a strain on their relationships with their partners – something that invoice factoring can help fix.
Since you can turn invoices into cash, you’ll have enough funds to pay your suppliers on time. You can also give other customers more flexible payment options if you don’t want to factor in all your invoices at once.
Not only that, you will also have the steady capital to cover operational expenses and salaries of your employees.
3. Save time from manual collections
Instead of chasing payments from your clients, you can sell your invoice and let our factoring team do the work for you. This way, you can focus on running your business and making the most out of the invoice advances you receive.
Aside from that, we also provide reports to give you insights on your income and the amount you’ve factored with us.
Ready to partner with an invoice factoring company?
Factoring can bring a long list of benefits to your business’ finances. Instead of relying on bank loans and paying hefty interest rates, you can explore factoring services for faster, easier, and guaranteed funding.
If you want to know more about our factoring services, feel free to contact us at Factoring Express today! With us, you can save your business from bad debts – call us today to learn how!
