Factoring Services Save Your Small Business Time and Money

by Kevin Smith Author

If you are a small business owner you know that sometimes cash flow can be an issue, especially if you are just starting out. Luckily there are factoring services in Savannah, GA. Here is a breakdown of how this valuable service is changing the way small businesses manage their cash flow, while saving time, and money.

What Is Factoring?

Factoring is selling your unpaid invoices to another company at a small discounted rate. The other company pays your business cash for the invoices, and then they will collect on the invoices when they are paid.

This is especially useful if you are just starting out, you can have cash immediately for services you have provided, instead of having to delay much needed expenses until you collect from your customers.

How It Saves Your Small Business Time

If your business operates on an invoice system, you may give your customers 30, 60, or 90 days to pay their invoices, but you still need a cash flow while you are waiting for them to pay. Bills, unforeseen expenses, and employee paychecks don’t wait for your invoices to get paid.

Instead, you can turn those invoices into revenue immediately. No more waiting, no more wondering if you will get paid for a service you provided, because you already have been paid.

Another way factoring saves you time is because you do not need to follow-up with the customer about paying their invoice, that is now the factoring company’s job. So you can relax, do what you do best, and let the factoring company handle collecting on the invoices.

How It Saves Your Small Business Money

Perhaps the most valuable way that factoring services help small businesses is by saving them money. Small business loans are difficult to get, and have incredibly high interest rates, which will cost you more in the long run. The beauty of factoring is that you get cash right away and you don’t have to pay it back.

Factoring saves you money when it comes to collecting on the invoices too. Since your employees don’t have to mail reminders, or make repeated phone-calls, you can save employee time and money.

Factoring services in Savannah, GA are a great way to ensure that your small business has the healthy cash flow to keep going strong. Give your small business the boost it needs and save time, and money with factoring today.