Invoice financing for small businesses doesn’t have to be hard. If you’re looking for invoice financing near you, look no further than Carter Funding Corporation.
Despite the name, invoice discounting isn’t just selling at a discount—it requires borrowing and collateral. Unlike invoice discounting, factoring is the actual sale of accounts receivable at a discount to a third party. That third party is the part of factoring referred to as a “factor.” Factoring allows immediate cash flow and sales through discounted rates for invoices. Outstanding invoices are converted into earnings that you use for your business right away.
Using a factoring company is a no-debt solution to getting your business’s immediate needs taken care of.
If you have receivables lying around, but you need quick cash, factoring improves your balance sheet by turning assets into money. It’s better than a loan, because loans require collateral. Collaterals limit your hard assets, and no one likes having to repay a debt when they are forced to take a loan. Invoice financing for small businesses can be hard, especially when you’re just starting out. The best invoice factoring companies will help you determine what and when you can sell your accounts receivable and get money faster than ever.
No loan, no collateral, and no debt means you get what you need now and don’t have to worry about those pesky interest rates later down the road.
With CFC’s help with invoice financing for small businesses, your business can open themselves to many opportunities. Factoring with CFC can aid you in meeting payroll deadlines, increasing your purchasing power improving your credit rating risk-free, paying outstanding tax obligations, eliminating bankruptcies, generating marketing funds, and providing capital for growth and expansion of your company.
If you want to attract more business, a generous credit policy is generally a good strategy for doing so. Unfortunately, focusing on your credit policy means that a lot of your earnings end up stuck in your invoices and accounts receivables. This side effect lowers your business’s financial liquidity. What does that mean? Well, it means that you might be too low on funds to invest in new opportunities for growing your company.
Plus, getting a bank loan can be difficult if you’re an emerging company and don’t quite have the star power to obtain a sizable loan. Many banks across the U.S. are making their loan approval policies much stricter, so it’s become more difficult for businesses of any size to qualify for any kind of loan.
Invoice factoring rates are, of course, another factor to consider. Invoice financing for small businesses is easier than ever when it comes to taking care of immediate needs for cash flow and other monetary necessities.
If your invoices are due in 30, 60, or 90 days, you can convert them into cash, debt-free.
A factoring company will help you figure out if you qualify for invoice factoring. It’s easier than taking out a loan from a bank! The basic requirements for qualification are B2B or business-to-government businesses with creditworthy invoice clients, not having any tax or legal problems, and invoices/accounts receivable are due or payable within 90 days of your factoring appointment.
So how does it work to do invoice financing for small businesses?
Let’s go with showing you through an example, using a 90% advance rate and 1% fee.
If Company A does a $50,000 order for Customer Z, Customer Z and Factor 1 are sent a $50,000 bill.
Within 24 hours, Factor 1 verifies with Customer Z that the work was completed properly.
Once it’s been verified, Factor 1 waits for Customer Z to pay the invoice and sends Company A $45,000, which is 90% of the invoice’s gross value. That $45,000 can be used for things like payroll or project investments right away.
Once Factor 1 gets the full payment from Customer Z, Factor 1 deducts $500 as a 1% fee and sends 4% of the reserve funds to Company A.
Rather than waiting it out for 30-60 days, your company gets the money faster than ever. The best part is that it’s not a loan! By doing invoice financing for your small business, you don’t have to worry about debt or business liabilities. It’s quick and instant, handles urgent cash needs, has no credit limit, requires no contracts, has no minimums or maximums, doesn’t require a great credit history, improves credit ratings, improves liquidity needed for payroll deadlines, lowers your risk of bankruptcy, helps pay off tax obligations, and is only limited by your customers’ credit.
Using Carter Funding Corporation allows you to use our funds for payroll, marketing, adding more customers, purchasing additional inventory, and increasing your purchasing power.
We know your company assets are valuable and that you need quick, easy service. For no additional charge, we also help with your Accounts Receivable Collections, which saves you time and money so you don’t have to hire a separate, contracted advisor in addition to our services.
Contact us today to learn more about how you can use invoice factoring for your business!