You can use the instant cash to generate growth, maybe hiring another salesperson who will bring in more business. Or buying an advertisement that will reach new customers. Or buying a piece of equipment that will accelerate production. Factoring also helps startups conquer not having enough time in business to qualify for many of the other choices in asset based lending.
Invoice Factoring can save you time and effort that would otherwise be spent on collecting from customers. That energy can be redirected to other business-building endeavors, like sales, marketing and client development. Many accounts receivables can be paid within 24 hours. That means same day funding and cash flow for your business to keep moving forward.
Unlike traditional bank loans, factoring doesn’t require you to risk your home or other property as collateral. Factoring is also not FICO driven so it makes a great choice for those with challenged credit situations.