Invoice Factoring Can Turn an Upside-Down World Right-Side Up
For small businesses, managing cash flow can be a challenge. Without the right resources, companies can find themselves in a financial spiral that can easily become overwhelming. Fortunately, invoice factoring offers a solution to this problem. By turning invoices into cash, business owners can gain the access to capital they need to cover expenses and stay afloat. Here’s how invoice factoring can turn an upside-down world right side up.
What Is Invoice Factoring Exactly?
Invoice factoring is a process that involves submitting invoices of unpaid goods or services for immediate cash. A company called a factor (like Goodman Capital Finance) advances funds against these invoices from the client and then collects the future payment. This process has been used by companies since ancient times and is still widely used today by small businesses who don’t have the time or resources to wait for payment from their customers.
How Does It Work?
When you factor your invoices with a reputable factoring company like Goodman Capital Finance, you are essentially selling them in advance of receiving payment from your customers in exchange for immediate cash. The factor will advance up to 90% of the face value of the invoice and will provide the remaining 10% once the invoice is paid by the client’s customer, less the factoring fee.
Invoice factoring is an excellent solution for companies that want quick access to capital but don’t want to take out expensive loans or dip into their own pocketbooks or may not qualify for traditional bank loans. It also allows business owners more flexibility in managing their finances and gives them peace of mind knowing that they won’t be left waiting weeks or months for payment from their customers.
With Goodman Capital Finance, you’ll get fast turnaround times and competitive rates so you can keep your business running smoothly without any hiccups along the way! Contact us today if you have any questions about our factoring services!