Who Needs Invoice Factoring?

By now you have heard of Invoice Factoring and may be wondering if you would benefit from this service.  Many businesses, from various industries, use factoring as a way to improve working capital and their bottom line.  Another benefit is the ability for small businesses to attract more business knowing that the financial burden will be minimized due to financing the accounts.  Here are a few examples of who might benefit from using Invoice Factoring:

  • Consulting Firms – While working on complex projects, it can be hard to find time to get all the funds needed to keep the project moving and clients happy. Often times, projects last weeks or even months before they are complete and then the wait begins after sending them their invoice.  Factoring alleviates the need to worry about how the everyday bills will be paid so that you can focus on the project at hand.
  • Temporary Staffing Company – You could experience payroll constraints due to increased contracts. Although a surge in business is a good thing, it may drain down your cash flow.  Factoring allows you to take on the additional work knowing that time sheets are submitted for employees, you will turn on a cash flow option to keep the engine humming.
  • Manufacturing Company – You need to keep the warehouse stocked to fulfill purchase orders, however current invoices have not been paid. Invoice Factoring allows you to keep up your stock, pay employees and attract new business without the worry of cash flow.

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