Use Invoice Factoring To Keep Your Business Rolling
You might hold up your end of the business bargain when it comes to supplying your customers with services or products, but that doesn’t mean your customers will pay for those services or products on time. Rather than sending letters, reminders and emails and making phone calls, Vantage recommends you consider invoice factoring.
The Facts About Factoring
When you implement factoring with your business model, what you’re doing is allowing a third party company to buy up your invoices and become the collector. It then becomes that company’s responsibility to collect the money your business is owed. What’s more is you’ll immediately receive a portion of the funds you’re owed. Now you’ll have access to the capital needed to keep your business going without waiting on your customers to settle their debts, which might take several months.
The Difference Between Factoring and Standard Commercial Loans
You’ll be pleased to know that invoice factoring isn’t considered to be a debt or loan. Over the years we’ve found that business owners are hesitant to apply for factoring because they don’t want to take on a debt they don’t absolutely have to. Take peace in knowing neither your business nor your personal credit score will be negatively impacted by factoring. Bear in mind that each and every cent of the money you’re receiving through factoring is money you’re legally owed.
Additional advantages of factoring include:
- Receiving customer payments faster, which means improving your business faster
- Having a quick and reliable solution to fulfilling your business potential and reaching business goals
- Not having to deal with the stress that often comes with tracking down customers and practically begging them for the money they owe
Operating your own business is stressful enough already, but owning a small business can be especially difficult. The market as well as your industry might be in a constant state of flux, and it can feel nearly impossible to keep up with so many changes. Make yourself more aware of just how many options you have to build a better business and do so without taking shortcuts you don’t have to or stressing yourself more than absolutely necessary.
Vantage is here to make sure you don’t waste a second chasing down customers for payment or delaying your business strategy. Get in touch with us to learn more about factoring or any of the other commercial financing options we offer. Help and relief is just a phone call or email away.