Steady cash flow is vital to growing a business, but the conventional route to secure it – getting a loan – can be difficult, and frankly, unappealing.
Stringent qualifying standards and paperwork hassle are high hurdles to clear. And with loans, there’s the burden of repayment plus interest.
But there is a way for business owners to get working capital and stay debt free: invoice factoring.
It all starts with an invoice – an unpaid bill for work you’ve already done. Factoring companies, such as TBS Capital Funding, provide you cash on the day you invoice your customer. The factoring company waits to get paid, so you don’t have to.
Factoring offers plenty of other advantages, too. It is not a short-term business loan; so there is no debt to repay. Your personal credit is not an issue; it is your customers who must be creditworthy. TBS Capital Funding also doesn’t require monthly minimums, enabling its clients to use factoring as much or as little as they need.
Factoring companies follow three basic steps. They will:
- Purchase your invoices. To qualify, the invoice must be for a business-to-business transaction, and your customers must pay on terms (“Net 30” for example)
- Advance up to 100 percent of the invoice value in cash immediately
- Collect payment from your customer when the invoice is due, on your original terms
When you don’t have to worry about chasing your cash you can focus on what’s really important: Growing your business with TBS.