Sunday, 31 July 2016

Invoice Factoring: An Easy Way to Fund Your Business

There is no need to explain the importance of capital in running and maintain a business. After investing profuse amount of capital, it is obvious that you can’t expect a hefty return in the first shot. Business take a time to grow and it is very common that many businesses run on debts. The return may take a time to be seen because many debts get credited after a stipulated time. But there may be a need to further expand the business at that time.

There are banks out there to provide credit to the business but maintain strict credit granting procedures. Compared to the banks, the invoice factoring options from the factoring companies have become very popular by quickly releasing the fund based on invoice amount, collecting the payment from your customers and give the rest of the balance deducting the factoring fee and dedicated amount.

Let’s look at the benefits with Houston invoice factoring:-

Fast Access to Cash
The approval process is very simple compared to the banks. It takes some time for preparing the initial setup from receiving the factoring application and supporting documents. The rest time taken is easy to approve the fund.

Cash Flow without Debt
You do not have to be liable to clear the monthly loan payments because factoring is not a loan. So your credit score stays clean.

Flexible terms
The terms and regulations to get the approval are so designed to be easy and flexible that you can easily fulfill the criteria. If this has not been made flexible, it would not have been so popular.

Reasonable Factoring Fees
The factoring fee is very low and depends on the deciding factors like the volume, customer creditworthiness, advance rates and the time taken by the customers to repay them back.

You Are Your BOSS
The factoring company does not dictate you how to spend the money.

Relieve Stress
As soon as you get the fund, you are all set to meet the essential requirements like meeting the payroll, paying your bills and taxes without to worry about the late fees.

Increase the bottom line
When the customers reimburse you the money, you can pay back the fund to the factoring company. It is possible to save some money by paying early and avail some discounts which pave the way for the bulk discount from these companies.

Strong Financials Not Required
Due to the flexibility in the application process, you do not require to be in business for years or possess a long financial history or a great credit to get the fund. The factoring decides on your customer base.

Professional Receivable Management
The factoring company takes the entire pressure of handling the paperwork, processing, and collection of payments based on the invoices. This helps save time and reduces in-house expenses.

So it is very clear why many companies prefer to approach services like Houston invoice factoring to do fund growth, meet payroll, pay bills and take advantage of early payment discounts.