For many businesses, cash flow can be a major issue. This is especially true if you invoice customers and get paid weeks after services are rendered or goods are shipped. You still have to pay for supplies and labor, but your valuable cash flow is tied up in your invoices. One effective way to solve the cash flow crunch is with invoice factoring. In fact, many companies that often invoice other businesses have found invoice factoring to be an effective financial solution for their business. Here are the basics and a few reasons your business may want to consider invoice factoring:
What Is Invoice Factoring?
With invoice factoring, you don’t have to wait months for your invoices to get paid. Instead, your invoices are paid in 24 hours or same day. Invoice factoring puts money into your account faster, helping you better manage those times when money is tight. Imagine what you can do with more upfront cash in your bank account!