When businesses need cash in a timely manner, they usually consider trying to get a loan. This has been the traditional way for small and medium companies to get money when they need it for their business operations. Unfortunately, many banks are more reluctant to fund small businesses because they are perceived to be a riskier investment. Invoice factoring is a great alternative funding source small companies can turn to when money is tight.
Businesses large and small experience cash flow problems when their finances are tied up elsewhere. When businesses provide a product or service for their customers, they issue an accounts receivable invoice for payment. Most invoices allow customers to send payment in 30, 45 or 60 days. Meanwhile, small businesses still have to generate sales, pay their suppliers and employees with operating cash. Invoice factoring helps cash strapped to maintain their business operations when operating funds are limited.
An invoice factoring company gives small companies cash upfront quickly and efficiently against the company’s own invoices. Businesses can actually sell their invoices from reputable customers to a factoring invoice company for a substantial discount. The business invoice factoring company then gives the small company cash upfront for up to 85% of the invoice. When the business sells the invoice to the factoring invoice company, they assume the job of collecting the total face value of the invoice.
New Century Financial has been in the invoice factoring business since 1985, and has proven success in helping companies with their financial dilemmas. They service companies in many types of industries, including manufacturing, staffing, energy and technology. Small businesses can take advantage of New Century Financial’s “Just In Time Cash” service that advances cash in a flash for credit-worthy invoices. Just fill out a short application form and small businesses can be approved in 24 hours for a fast, efficient cash boost.
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