4 Things You Didn't Know about Business Invoices

by Kevin Smith Author

The business world can be complicated, with so many different processes and systems. It takes a village to make any organization run smoothly. Receivables servicing in Dalton, GA, also supports operational success. There are a variety of resources to help businesses with their invoices, accounts payable and accounts receivable. Let's take a look at four things you probably didn't know about business finances!

Fast-Paced

Today, businesses need to be ready to make moves in the blink of an eye. Opportunities come and go quickly, and companies need to be prepared to take care of tasks efficiently and effectively. Orders come in, prices drop and new spaces open up. Companies need to be prepared to take advantage of small windows of time and capitalize on room for growth. That being said, other aspects of business can move much slower, including payments. In some cases, it can be 30, 60 or even 90 days between submitting an invoice and collecting your funds. That's why many businesses are turning to receivables servicing to get them their money faster.

Building Business

Business credit organizations are becoming more popular as they allow small businesses and companies to grow and achieve great things. By partnering with an invoice factoring program, business can access the money they need to expand their reach right away. Rather than wait for several months to see their hard-earned money, small businesses can get their funds right away when they work with a financial partner.

Discount Factoring

Discount factoring is a simple process that makes a big difference. Businesses can sell their open invoices to a credit service provider at a discounted rate. That provider then collects funds from the original customer when they are due for payment. This process puts money in the accounts of small businesses right away, eliminating the lag between invoicing and collection. Because factoring services are not a loan, no credit checks or lengthy applications are required. These transactions don't affect balance sheets or a company's ability to secure other types of financing. While working capital loans and asset-based loans can be challenging to obtain from banks and other lenders, factoring invoices from a trusted provider can be arranged with just one phone call.

Benefits

Many companies in a variety of industries can benefit from invoice factoring. Small businesses with international clients often experience a long period of time between invoicing and collection. Gathering payment from people across the world can also be difficult, with different currencies and payment methods. With invoice factoring, the burden of international collection is place on the credit service provider, so businesses don't have to worry about that. Freight companies also benefit from factoring services because they can receive money as soon as they complete a delivery. This gives truckers the funds they need to move onto the next job quickly and efficiently. More and more companies are turning to professional options for Receivables servicing in Dalton, GA.