Virtually all small businesses eventually find themselves in the position where cash flow has temporarily dried up, or where there is insufficient working capital to take advantage of business opportunities which might lead to longer-term growth. However, in most cases, a traditional lender like a bank can’t really come through quickly enough for you in order to help relieve that cash flow congestion problem. One of the best ways of solving issues like this, and for securing the working capital you need to facilitate business growth, is to engage in invoice factoring.

What invoice factoring is

Invoice factoring is an ingenious financial arrangement in which a business like yours can sell some or all of its invoices to a factoring company, in exchange for immediate upfront cash which amounts to some percentage of the face value of those invoices. The factoring company then owns the invoices, and it has the responsibility for collecting all the payments from your customers. After the factoring company has collected invoice amounts from your customers, it returns a portion of that amount to your business, while subtracting out its fee for the factoring service.

Advantages of invoice factoring

As mentioned above, the speed at which invoice factoring can be arranged is much faster than any conventional lender can manage, partly due to the fact that alternative financing is less heavily regulated than banking businesses are. If you get into a regular practice of factoring, it’s a financial arrangement that can grow right along with your company, since a higher volume of invoices can be sold to a factor, once your business grows.

Another huge advantage of invoice factoring is that it is not a loan, so there’s never any monthly payment to send into a bank or other lending agency. You also don’t need to put together any kind of collateral in order to get that upfront payment from a factor, because in fact, the invoices themselves serve as collateral to the whole transaction.

A great factoring company

If you’re looking for a great factoring company to work with, look no further than GrowthCC, one of the premier alternative lenders in the business. Contact us about arranging for invoice factoring, so you can keep your cash flow regular, and so waiting for payments can become a thing of the past.