For some businesses, traditional lending solutions are not the right fit. In these cases, it can be difficult to obtain the working capital needed to ensure your business continues to operate smoothly. Here at the Commercial Finance Group, we specialize in bridging the gap between businesses who are deemed “unbankable” and the lending solutions they need. We can work with you to determine how you can best improve your cash flow and get your business on the right track. We view our company as a helpful solution for small businesses who need to get on the path back to bankability. Our goal is to ensure that you can achieve the goals you set out to conquer with long-term lending solutions that match your unique business.
One solution we can help you look into for your small business is invoice factoring. This unique lending solution might be ideal for your company if traditional lending solutions have failed you. Read on to learn more about how invoice factoring works and the key benefits to this solution.
Accounts Receivable Financing
When it comes to creative lending solutions, accounts receivable financing — or factoring — is a method in which your business works with a factoring company to sell your outstanding accounts receivable. The factoring company will purchase your accounts receivable at a discount and will then be in charge of collecting the money from your customers.
In return, your business is provided an immediate cash flow. This can be extremely beneficial for a small business who is having trouble with traditional lending solutions. Perhaps you have been denied the loans you need from banking institutions, but you require this cash flow to fuel your business. In this case, invoice factoring can be a true lifesaver for your company. While factoring is an excellent solution for many small businesses, it is not always the ideal fit. Before you commit to this form of lending, be sure you spend time working with a knowledgeable lending provider who can guide you through the ins and outs of factoring. Here at the Commercial Finance Group, we will be happy to take the time to thoroughly understand your business to help you determine whether or not factoring is right for you.
Key Benefits Of Choosing Factoring As Your Lending Solution
If you do go the route of invoice factoring, there are an array of benefits to your business. Check out the following key benefits that your company will receive when you opt for invoice financing.
Obtain Working Capital For Growth
Do you want to spur more growth for your small business? If so, you will need the working capital to do so. It can be difficult to find a lending solution that allows you to utilize capital towards growth endeavors. The good news is that when you opt for invoice factoring, you can turn that money into working capital fueling the growth you envision for your business.
Fund Payroll And Taxes
At times, your small business might struggle to fund even the basics. When funding is tight and it is necessary for you to meet basic needs, such as payroll and taxes, the stress can become overwhelming. Factoring will allow you to fund these necessary components of your business, relieving you of stress and worry. Ensure your company is on the right track by fueling your company through invoice financing.
Immediately Improve Cash Flow
Waiting around for traditional funding can involve large amounts of time. Unfortunately, you might not always have the luxury of time. When you need funding and you need it fast, invoice factoring is an excellent solution. Factoring will allow you to immediately improve your cash flow. No more waiting around for finalized funding. In many cases, if you have adequate documentation, you can receive approval in two to five days.
Relief From Collections
Let’s face it. Chasing down money from no-pay and slow-pay clients can be tedious at best. If you are stressed about collections and frustrated at the lack of payment you are receiving, factoring can provide you with relief. When a factoring company purchases your accounts receivables, they are now responsible for the collection of those funds. You are no longer on the hook and, instead, you are free to utilize these funds for growing your business.
Work With The Experienced Team At The Commercial Finance Group
Does factoring sound appealing to you? Are you curious if this is the right fit for your small business? Perhaps you have an array of questions or concerns about this unique funding solution. If so, we invite you to reach out to the team at the Commercial Finance Group. We have decades of experience helping small businesses find the ideal lending solutions for their needs. We never take a one-size-fits-all approach to funding. Instead, we spend a large amount of time getting to know you, your company, and your future goals. Then, we utilize this information to seek out the ideal solution for your needs.
Not only will we work with you to determine if factoring is right for your company, but we will also talk to you about the ramifications for your future. We will help you create a plan that puts you back on the path to bankability. We see ourselves as a bridge, simply here to help you along the way for the time that you need us. Reach out today to learn more about invoice factoring and find out if this is the right lending solution for you.
