Many newer and smaller companies enjoy the benefits of using invoice factoring, so we’ve put together this list of the top ten benefits that you could be enjoying as well. Here are ten tips for factoring your invoices:
- It can turn your accounts receivable into cash, almost immediately.
- The process is easier and quicker than traditional funding methods.
- Since you’ll be receiving your funds up front, it allows you to offer better and more competitive terms to your clients.
- This cash advance also allows your company to take make early payments or receive volume discounts from your vendors.
- It allows you (or your employees) concentrate on growing your business and providing the best service possible, instead of focusing on your accounts receivable and your collection process.
- It helps you to build and/or improve your business’s credit, since you’ll have the means to pay your creditors within their terms. With invoice factoring, you don’t have to wait on your clients’ payments anymore.
- You won’t be in any debt, factoring is an advance, not a loan.
- It can help get your invoices paid faster. Having an experienced, professional company assist in managing your collections and accounts receivables typically will shorten the time your invoices remain unpaid by your clients.
- It can provide you with detection of any customer issues. Your factoring company can essentially be your outsourced accounts receivables department and can alert you if any issues or potential problems come up with your customers.
- You will receive invoice processing assistance, credit screening and monitoring, and professional collections in addition to the main reason you’re factoring your invoices, the cash advance.
If you’re ready to grow your business and reap these benefits, GMA Factor can help!