Invoice Bankers
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Small Businesses Using Invoice Factoring to Compete with Large Companies

Cash flow for small businessesInvoice factoring boosts a business’s cash flow, and it boosts it fast. If you own or operate a small business, and if your business could benefit from a positive cash flow, it’s time to explore invoice factoring to get your outstanding accounts receivable paid. While many small business owners elect to apply for small business bank loans when they are in need of immediate capital, bank loans involve debt that must be repaid. The burden of taking on excessive debt can be overwhelming and even detrimental to some small businesses. Not to mention the fact that bank loans are not even a viable option for some small businesses.

Invoice factoring is an excellent solution to either short-term or long-term cash flow problems for large and small businesses alike. Invoice factoring is a common and widely-accepted practice for large businesses within a wide range of industries. The fact that many small businesses can take advantage of the invoice factoring option – just like large businesses – allows small businesses to operate like large businesses. The ability for small businesses to realize positive cash flow by working with an invoice factoring company is a true benefit that can make small businesses seem much larger than they are.

Invoice Factoring Can Benefit Small Businesses in Many Ways

Following are a few ways in which accounts receivable factoring can benefit small businesses and provide them with the ability to operate like big businesses:

  • Invoice factoring provides small businesses with much needed cash that can be used to pay vendors, buy supplies, pay employees, or pay for other business expenses.
  • When small businesses choose invoice factoring, they can focus more of their attention on product development and on growing their business – instead of spending time and money on employees in accounts receivable and/or collection departments.
  • There is no delay in receiving payments for outstanding invoices when small businesses utilize invoice factoring. As soon as its invoices are sold to an invoice factoring company, the amount due on the receivables (minus a discount) is paid.

No Bank Loans, No Worries!
Big businesses tend to have many more options than small businesses do when it comes to finances. Because big businesses tend to generate more revenue, they may appear to have more financial power. It can be difficult for small businesses to compete with big businesses in this arena – and some don’t even try because they think their efforts will be fruitless. However, invoice factoring provides small businesses with a unique power – the power to generate capital quickly – – without the need to wait for customers to pay their invoices inĀ  30, 60, or 90 days.

Because invoice factoring does not involve any type of bank loan that must be repaid, small businesses do not have to worry about incurring massive amounts of debt in order to compete with big businesses. No matter if Growing your small businessyour small business is interested in the debt associated with a bank loan or not, you can rest assured that invoice factoring is much less stressful and can be much simpler than a bank loan. Invoice factoring is easy, and it allows you to eliminate the need to expend resources meeting loan covenants and constantly interacting with the bank.

Raise Cash Today, Spend Cash Tomorrow
Invoice factoring isn’t right for every small business in every industry – but it’s a good choice for quite a few of them! If you are the owner of a small business and you either don’t want to explore a bank loan or you’ve been denied a bank loan, you have options. If your business will not only survive – but THRIVE – with a positive cash flow, invoice factoring is well worth exploring. Accounts receivable factoring has assisted many small businesses in achieving their ultimate success.
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Editor’s Note: Greg Curtiss is President of The Invoice Bankers. Mr. Curtiss previously was a lawyer and has passed the CPA exam. He has been in business for over 25 years. You can reach him by calling 303-740-7600 or 1-888-740-1750.