For entrepreneurs who have run into cash-flow problems or defaulted on previous loans, the chances of becoming part of a grim national statistic loom all too large.
Only half of all start-ups survive to their fifth birthday.
That’s reality, according to the Small Business Administration. But with the help of invoice factoring, you can avoid becoming another casualty.
Invoice factoring is one of the fastest growing funding options in the world. A recent industry report cited the global market for invoice factoring at $3 trillion.
Put simply, factoring gives you immediate access to the money that is tied up in your invoices. It’s fast, and easy. And don’t worry if you’ve got a financial faux pas or two on your credit history. With factoring, it’s your customer’s credit that matters.
As long as your clients are creditworthy, factoring companies, such as TBS Capital Funding, will buy your invoices and advance cash immediately. When the invoice payment is due, factoring companies will collect payment from the customer, on your payment terms.
The benefits of factoring are many for small businesses, especially start-ups that often need cash urgently. Unlike loans – which have become increasingly difficult to obtain – factoring avoids loading up your balance sheet with debt. Just as significantly, it eliminates the burden of repayment with interest.
Factoring simply accelerates your cash conversion cycle – the time between issuance of an invoice and receiving payment from a customer – giving you instant working capital to tackle your urgent needs, whether it’s buying supplies to fulfill a new order or making payroll. And with a factoring partner taking on the responsibility – and headaches – of collection, you’re freed to focus on growing your business.
Factoring is a great funding option for business owners, and it’s an even better one when you need a second chance. Start your second chance today.