We handle much of the work associated with processing invoices, including addressing of the envelopes and mailing them to your customers, posting them to a computer system, depositing checks, entering payments, and producing regular reports. This can greatly reduce your current overhead cost. Factoring is the only source of financing that grows with your sales. As your sales increase, more money becomes immediately available to you. This gives you the ability to meet a constantly increasing demand.
Many companies offer discounts to their customers as an incentive to pay invoices early.
This one change can save you 2-15 percent. Factoring is not a loan, and therefore you are not incurring any debt. Your balance sheet looks good - and it is easier for you to obtain other types of financing or to ultimately sell your company. Once you begin factoring and you have adequate cash flow, you can pay your bills in a more timely manner and start to establish, or improve, your credit. You get better credit terms from your suppliers and enhance your chances of getting conventional financing in the future.