One of the most frustrating feelings among business owners is waiting to get paid. Businesses with sluggish cash-flow, seasonal business and extended payment cycles can specifically relate to this pain. If you haven’t heard of it, you should know that invoice factoring is one of the greatest solutions for short term funding issues related to cash flow. In case you need immediate cash but customers aren’t generous enough to make timely payments, invoice factoring comes into play. Through this, you can easily convert unpaid invoice into faster cash. However, you shouldn’t deem invoice factoring a sort of loan as it is actually the process where you sell off your invoice at a big discount to any factoring company.
Factoring Companies – What Are They and How Do They Work?
They are third-party financing companies which offer business capital in lieu of collecting the unpaid invoices. They assist business owners get access to cash flow to cover commercial expenses while they keep waiting for the customers to pay. Factoring companies charge small business owners for the service in the form of factor fees. Is it that some factoring companies are better than the others? The definite answer to this question is ‘Yes’! Let’s take a look at the companies which you may use as resource for seeking help of this funding service.
Have you been searching for a single website which would offer you with a list of all other invoice factoring companies in the town? If answered yes, FactoringClub is the best one for you as they are a web directory service which provides you with a list of factoring companies. Not only will they give you a list but they will also tell you about the descriptions, locations, terms, credit facilities, industries served, services offered, features and contact details. Any business firm which is desperately looking for a financing firm like this can undoubtedly seek help of Factoring Club. It saves you the stress and time and you can also take firm decisions based on realistic reviews from previous customers.
With BlueVine, the loan amounts can be as low as $20,000 and as high as $500,000. The company will charge you fees based on the time during which invoices remain unpaid. The fees of this company, BlueVine are charged in the form of a discount rate which ranges from 0.4% to1%. They assure you 100% online application and the best funding experience. The best part of working with BlueVine is that it is easy and fast. Small businesses which suffer from irregular and lumpy cash flow can definitely benefit from BlueVine. The application process is 100% online and you will soon receive the funds in your bank account within a day.
Loans range just from $100 to $100,000 and low factor rates of around 0.5% of the invoice value in a week when the invoice remains unpaid. The application process of funds takes as less as 24 hours. Fundbox is deemed to be one of the best invoice factoring companies for small businesses and their speciality is that they fund different types of business and the overall procedure is extremely user-friendly. Once you have advanced the money, you have to pay them within 12 weeks and you’ll be charged a factor fee of around 0.5% every week.
Therefore, if you’re getting irritated with slow-paying customers who are looking for more generous payment terms from you, you should get help from any of the above mentioned factoring sites. Make sure you check the reviews of the satisfied customers before signing up with them.