Top 10 Reasons Why You Should Use Invoice Factoring

You may not have the benefit of a robust savings account or large line of credit. Invoice financing, also known as “accounts receivable financing” or “invoice factoring,” is one way to bring cash into a business by offering the business’ unpaid invoice value as collateral. There are many reasons to consider invoice factoring and here are the 10 reasons why you should use invoice factoring today!
1 Make Payroll: “We need to make payroll by the end of the week.”
2. Pay a Supplier: “We need to pay our trusted supplier for raw materials.”
3. Declined by Bank: “We were declined for a bank loan and still need financing.”
4. Accounts Receivable Management: “We don’t have someone monitoring invoices and incoming payments.”
5. Slow Paying Customers: “Many of our customers require 15, 30, or 60 payment periods, we have a small fortune tied up in accounts receivables.”
6. Low Cash Flow: “Every single month, we earn revenue but never have cash on hand.”
7 Fast Growth: “Sales are growing, but cash flow is dwindling. We can’t sustain this level of growth.”
8. No Debt: “We don’t want any more debt, but we still need financing.”
9. Can’t Fulfill Large Orders: “We can’t take on more customers or big jobs, because we don’t have the cash to front new projects.”
10. Swamped: “We’re so busy, that we need a financing solution that’s fast and easy.”

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