Top 5 Reasons Entrepreneurs Use Invoice Factoringby Kevin Smith Author
As an entrepreneur, you know how to meet customer needs. Even with a killer product or in-demand service, however, you need working capital to succeed. Unfortunately, securing a business line of credit or small business loan can be challenging for young companies. There is, nonetheless, a ready solution. Invoice factoring services in Alpharetta help entrepreneurs raise the working capital they need to grow their businesses. Here are the top five reasons savvy entrepreneurs use invoice factoring to raise working capital.
1. Get Cash Fast
The primary reason entrepreneurs use invoice factoring services in Alpharetta is to get cash fast. With other financing options, securing working capital can take weeks or months. That typically isn’t the case with invoice factoring. In many cases, entrepreneurs receive cash within 24 to 48 hours after the company approves invoices for factoring.
2. Avoid Debt
Invoice factoring is not a loan, so it doesn’t cause your startup to incur debt. Thus, you don’t have to worry about budgeting for monthly repayment costs. You also don’t have to limit your company’s ability to seek other financing, because invoice factoring does not appear on your balance sheet. Either way, if you are looking to avoid debt, invoice factoring is hard to beat.
3. Keep Control
Entrepreneurs often must give up control of their startups to secure working capital. With invoice factoring, that usually isn’t true. Since you likely don’t have to sign an onerous contract, you don’t have to comply with harsh loan terms. Instead, you choose which invoices to factor and when you want to factor them. For a flexible way to raise cash, invoice factoring is usually the entrepreneur’s friend.
4. Pay Low Fees
It is hard to dispute that loan fees for startup companies can be exorbitant. With invoice factoring, small business owners typically pay less. Depending on the service your company chooses to use and other factors, you may pay as low as 1.5%. Talk to a invoice factoring professional to get cost-benefit projection specific to your company.
5. Receive Professional Service
You probably don’t want your customers to realize you have used an invoice factoring service. When you work with the right one, your clients get professional, reliable service. To boost your professionalism, work with a good invoice factoring service to better meet customer expectations.
If you need working capital, you know how difficult it can be to secure a loan or business line of credit for your startup. Fortunately, invoice factoring services in Alpharetta may be able to help. Make your outstanding invoices work for your small business by using them to raise working capital.
Created on Nov 15th 2017 00:36. Viewed 280 times.