Factoring Service: Can It Help Your Business?
(For immediate release) Miami, Florida – Growing businesses always face cash flow challenges, especially when they have to wait 30, 60 or 90 days to get paid by clients. When faced with this challenge, many business owners try to obtain traditional business financing products, such as business loans or lines of credit. However, many business owners have been turning to factoring services, as they are easier to obtain and many times, work better than a business loan.
“A factoring service can be a great tool for companies that cannot afford to wait 60 days to get paid for their invoices,” said Marco Terry, president of Commercial Capital LLC. “It eliminates the payment wait and provides capital to pay employees and suppliers”, he later added.
By eliminating the payment wait, factoring provides client with a valuable service, allowing them to better manage their cash flow. It works as follows:
- You invoice your client
- The factoring company services your invoice and provides you with an advance of up to 90% (Installment # 1)
- You get funds to operate the business
- Once your client pays, the financing company pays you the second installment less a small factoring service fee (Installment #2).
Invoice factoring is relatively easy to obtain and can be set up in as little as a week. To qualify you must meet two important criteria. You must do business with reliable commercial clients and your business must be well run.