October 21, 2015

For business owners, the promise of getting working capital without taking on debt or giving up equity may sound too good to be true. But the promise is real, and it can be realized with the simplest of transactions.

 

Accounts receivable or invoice factoring isn’t some new-fangled financing scheme. It is a sound and long-used practice that has fueled business growth around the world and across a spectrum of industries. In fact, a recent industry report cited the global invoice factoring market at $3 trillion. And use of the funding option is growing rapidly.

 

Here’s why: It converts unpaid invoices into same day cash without hassles.

 

The process begins with an invoice – an unpaid bill for services or goods your company provided to a client. Factoring companies, such as TBS Capital Funding, buy your invoice and advance cash. When the invoice is due, the factoring company takes responsibility for collecting from the customer, according to your original terms.

 

For companies, big and small, factoring is an efficient way to maintain steady cash flow to pursue any number of tasks – hire more workers, buy more supplies, etc. – to grow their business. The only cost is the factoring fee, which is typically about the same or less than the processing fee on a customer credit card purchase.

 

And you don’t have to fret about your credit history or meeting stringent qualifying standards. With factoring, it’s your customers’ credit that matters. Get started now.

 

 

 

 

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