Why Business Factoring Services Have Become So Necessary Here In The United States

Here in the United States, small businesses make up the backbone of our overall economy in many different ways. And small businesses are, of course, hugely important on a personal level as well. We grow up surrounded by small businesses, we love them and many of us frequent them on a regular basis. In many ways, we support small businesses to support our loved ones and friends, many of whom own small businesses all throughout the country.

But though small businesses feel personal, they are a huge part of our national identity as well. After all, there are very nearly 30 billion small businesses open for business at the current date (around just about 28 billion small businesses, to be just a little bit more exact) – and this is a number that is only likely to grow and grow in the years that are to come, especially as American made products become more highly sought after than ever before. This means that, effectively, small businesses make up more than 99% of all businesses that are based out of and operating here in the United States. This means, of course, that small businesses are important on the personal level, it’s true, but on a much larger scale than that as well.

But small businesses can be prone to struggling, especially when it comes to matters of cash flow. In fact, up to 82% of all businesses that fail will do so because of cash flow problems, and it is these cash flow problems that smaller scale businesses tend to be much more prone to. For instance, more than 25,000 bankruptcies were filed in the second quarter of the year of 2016 alone, a number that has only continued to grow in the years that have passed us by since. For small scale businesses, problems with cash flow can originate from a number of different places, and all can end up proving to be quite hugely detrimental – even business ending – indeed.

One main cause of difficulty with cash flow can be traced back to a lack of invoices paid on time. Unfortunately, late invoice payments tend to be pretty par for the course, with up to 60% of all invoice payments coming in late – sometimes very late indeed, though this will certainly vary from case to case. This can have a profoundly negative impact on small companies and businesses more so than others, and can even lead to cash flow problems severe enough that filing for bankruptcy – and sometimes even shutting down entirely – becomes the only real solution.

Fortunately, invoice factoring services such as advance business capital factoring services and small business invoice factoring services can help to save companies struggling with late and unpaid invoices. In fact, such advance business capital factoring services can even, in many cases, save small businesses. Small businesses who take advantage of the services provided by advance business capital factoring services and invoice funding companies will get up to 90% (and typically no less than 60% at the very least) of all outstanding invoices converted into a cash loan to be paid off (plus a small transaction fee) once the original invoices have actually been paid themselves.

Taking advantage of advance business capital factoring services is something that has become quite commonplace all throughout the United States, and companies offering advance business capital factoring services and other types of invoice factoring services (such as that of the typical trucking factoring service) have become more accessible than ever before – no matter where your small business might be located all throughout the country.

Even taking smaller scale steps can also have a bigger impact than some small business owners might initially think. For instance, switching to an electronic system for sending out and gathering invoices might actually help to avoid the need for advance business capital factoring services entirely. After all, paper filing systems for invoices have been found to be as much as 57% more expensive than electronic filing systems, all things considered surrounding the invoice payments for companies.

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