Contact a Invoice Factoring Broker to Learn More About Working Capital Funding Strategies

Written by Business magazine. Posted in Invoice factoring services, Small business factoring invoice, What are factoring services

Small, as opposed to large businesses, have less than 500 employees on staff. It’s interesting to note that 99.7% of all businesses within the United States fall within this category. Unfortunately, a large percentage of small businesses fail due to cash flow issues. A U.S. Bank study found that this applied to 82% of failed businesses. While there are a variety of situations that can contribute to cash flow issues, the incidence of unpaid or late invoices impacts this situation significantly.

Small Business Start-Ups and Invoicing

In order to launch a small business, the Wells Fargo Small Business Index reported that an average of $10,000.00 is needed for start-up capital. Once a small business has begun operating, it’s been determined that almost 60% of its invoices are not paid on time. If this situation were reversed, however, it has been estimated that small businesses within this country would be able to hire 2.1 million additional employees. As a result, unemployment rates could be reduced by 27%.

What Is Business Receivable Factoring?

Basically, invoice factoring, which is a type of accounts receivable financing, converts outstanding invoices to cash. When a business has invoices that are due within 90 days, for example, invoice factoring will provide the necessary cash so that a business can continue to operate and expand. In general, the initial funding will take approximately 48 hours to be set up. After a business’ scheduled invoices are received, it will usually take less than 12 hours for the funding to be available.

Learn More About Invoice Factoring Services

If you are asking the question, “What is business receivable factoring?” then you may be considering whether or not you need a small business loan. Since there’s an excellent chance you’re exploring a variety of working capital funding strategies, invoice factoring solutions may prove to be a viable option.

Since there are several factors which will determine whether or not your business qualifies, it’s important to schedule a consultation. One of these contributing factors is your business credit score, which differs from your personal credit score. The difference between these two scoring systems is that personal credit scores range from 300 to 850. The scale for business credit scores ranges from 0 to 100. During your appointment, you will be able to discuss your business’ current financial situation in detail, provide necessary documentation, and learn more about how invoice factoring services can benefit your company.

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