Why Invoice Factoring Works
What is an invoice factoring service? And why do you need it?
Does your B2B or B2G (business to government) business need a cash infusion yesterday? Are you tired of your employees – or maybe it is just you, if you’re flying solo – wasting time going after unpaid invoices you’re your commercial or business clients?
Or is your startup money-hungry, with more assets on the books than in your bank? If you are really strapped for cash, are you considering selling off your hard-won equity in order to keep going? Are you hunting around for a solution to your business’s cash flow woes?
Maybe an invoice factoring service is right for you.
You know what it is like. Your clients are wonderful, and they make sure to pay you on time, but not as fast as you really need them to. You can’t really ask them for a faster turnaround when the payment terms have already been agreed to and signed. So you are losing ground even before you start. To make matters worse, you’re losing liquidity even though nobody is doing anything wrong.
Here is where an invoice factoring service can really help. At its essence, invoice factoring is a creative means of financing your company. And you do this by assigning or selling your invoices to a third party. Third party invoice factoring services buy your invoices at a discount, in exchange for fast cash. The total paid to you is then your invoice minus a certain reserve amount.
You do not have to wait around and waste time (and potentially lose out on opportunities) in order to collect your accounts receivables. And invoice factoring does not constitute collections or a loan! After the sale or assignment of the invoices, the invoice factoring company then collects the receivables your customers owe you, and then they remit the reserve to you, subtracting out their charge-backs and handling fees.
As a result, your cash flow becomes more predictable and secure. And you can take advantage of growth opportunities, meet your payroll obligations and pay your taxes in a timely fashion, fill your pending purchase orders, make repairs or start expanding, or restock your inventory. You can even address any seasonal or periodic cash flow issues.
With invoice factoring rates starting as low as 1%, Carter Funding is a smart choice. Let us convert your accounts receivables into cash. We can provide you with up to 90% advance rates, and of course we’ve got same-day funding. You can have cash in hand without waiting around for 30, 60, or 90 days or more for your outstanding invoices to be paid. We have been providing client solutions since 1994 and of course we provide 24/7 access to online reports. We keep your invoice factoring costs low while getting your business the liquidity it needs to improve, expand, or just stay afloat.
We, at Carter Funding, believe that business growth has no limitation. So we offer same-day financing approvals and we are dedicated to helping you with your invoice factoring needs and keeping your dreams alive and kicking. Let us take you to the next level.