Factoring Receivables: Can It Really Improve Your Business?

There are many funding solutions available that claim to improve cash flow, and to correct or prevent financial issues for business owners. However, not every solution is the right fit for all businesses. Factoring receivables stands apart from the rest by being universal to businesses in all industries. Whether you are a skeptic, or are eager for an option designed to boost cash flow, let’s take a hard look at how factoring receivable can impact your business.

What Is The Purpose Of Factoring Receivables?

Before agreeing to anything, you should figure out if factoring receivables has any short-term or long-term benefits for your business. By factoring receivables, your business will be able to exchange receivables for immediate working capital, which eliminates the waiting period on customers to remit payments. Factoring receivables also does not involve any debt, unlike traditional programs to improve cash flow. Factoring services preserves credit ratings and does not saddle your business with monthly installments or debt.

How Creditworthy Are Your Customers?

Not every customer account has a long-standing history with your business. Rarely can you get a good idea for if new customers are going to pay on time, request extensions, or let their invoices lapse completely. By factoring receivables, your business is notified of how creditworthy your customers are before you submit invoices. This removes the risk involved in exchanging invoices for capital.

Can You Afford To Streamline Your Accounting Department?

For new and small businesses, the owner is often wearing many hats, including that of the in-house accountant. On top of growing the business, marketing, and making sales, business owners have to spend long hours tracking unpaid invoices and even performing collections. By factoring receivables, that burden is lifted. Factoring services eliminates the need for collections, by converting delinquent invoices the same way as it exchanges new and open invoices for capital. Having your revenue come from one source with a fast turnaround time might not be for everyone, but it allows many entrepreneurs to focus on growth and internal projects, while simultaneously freeing up time and resources.

Learn More About Factoring Receivables

At BG Capital Funding Group, we offer factoring services, as well as many other debt-free financing solutions for new and small businesses. If you want to learn more to see if factoring receivables is the right fit for your business, contact our offices at 702-605-3100 today.

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