Because factors are counting on your customers paying their invoices, they are more concerned with your customers’ financial status. Factoring companies will collect directly from your customers and may require you to validate your customers’ payment history. If your business has creditworthy customers, factoring could help your business get working capital up front.
The key benefit of factoring is receiving quick boost in working capital, as many factoring companies will pay for your invoices within 24 hours. Since factoring is not a loan, you do not assume debt for the money you receive.
Waiting 30, 60 and sometimes 90 days for customer payments can put a great deal of stress on your cash flow. By factoring with us, you can build up more working capital to pay vendors, meet customer demands and grow your company.