BusinessCash is funding during the COVID-19 crisis.

Why hide from the facts? Working Capital from an Invoice Factoring Company is more expensive than a traditional line of credit from a bank. Of course, you might not qualify for bank financing, or bank financing could be woefully short of your capital needs. However, working capital is just a business tool to be used, and like all tools must be used correctly. Let us look at how to get the most out of your Invoice Factoring Company partner:

Use Your New Credit Department:

 One of the best tools with Invoice Factoring is you get a Credit Manager for free. A credit manager with credit data subscriptions can cost $75,000+ a year. A Good Factoring Company can stay on top of credit change scores of your existing clients, offer accounts receivable insurance, and pre-approve the credit amount on potential new clients for you. So talk to your Factor Account Representative often about these key business drivers to grow your business. A traditional bank will give you the money and not look weekly at your customer’s creditworthiness.

Have the Terms match your Historical Cash Flows:

A Good Factor has sophisticated software to track your account. Many variables, such as advance rates and fee triggers, can be custom-tailored just for your situation. For instance, your clients have a particular payment pattern. If they typically pay in 47 days, you would not want a factor who charges based on a 15-day rate. On day 46 a new 15-day fee would be charged even though your client paid only two days after that. An Invoice Factoring Company who cares about their clients will match your payment history to your fee table.

Receive Payments Sooner:

Many entrepreneurs worry that clients will perceive Invoice Factoring negatively. If your customer has your best welfare at heart, the exact opposite is true. Your Account Representative at a competent Factoring Company will have a cordial but professional relationship with you and your client. Many times the fact that the Factor will verify that your invoices are in the accounts payable system of your customer will all the proper paperwork will accelerate your cash flow. With an Invoice Factoring Company’s help, your clients will see you as more professional to your clients.

Need help with utilizing an invoice factoring company?! Call (888) 400-5930 or use the fast, safe & secure online funding application.

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