Many companies look to Factoring as a good cash flow
solution, but some types of industries are ideally situated to reap the most
rewards from this alternative versus an unsecured small business loan.
Many of these businesses are plagued by slow paying or late paying customers which can reduce cash flow to a trickle. Factoring allows these businesses to free up capital and gives them a predictable cash flow volume, enabling them to grow their business at a faster rate. Some of these industries include:
Many of the expenses of running a transportation company are up front: Fuel, tolls, maintenance, payroll, and taxes all must be paid in a timely manner, often before invoices are paid to the transportation company. Using such an accounts receivable line of credit increases operating cash flow.
Upfront cash allows your business to expand by investing in new inventory and equipment, which can keep you competitive in today's challenging business climate.
time and money by receiving multiple, independent quotes for Factoring services. Best Business Payroll has arranged with BuyerZone to provide free,
customized estimates from a variety of pre-screened Factoring companies– with no obligation to buy.
Businesses such as consulting firms, IT companies, security services, and wholesalers who may have late paying customers see factoring as a viable cash flow solution.
Factoring can enable machine shops to grow more quickly; with increased cash flow they are able to take on bigger customers and fill larger orders.
The time lag between placing temps, being paid for their services, and meeting payroll can produce a real cash flow crunch. Temp agencies sometimes fail because they run out of working capital; having a Factor account receivable line of credit alleviates these concerns.
This is a typically expanding, growth oriented industry which can benefit from increased cash flow to assist with the company’s growth and enlargement.
These companies need a predictable and manageable distribution of cash flow. The availability of working capital without waiting 30,60, or even 90 days past invoice can give these companies the ability to grow.
In addition, Factoring can provide companies with: