Invoice Factoring for All Other IndustriesInvoice factoring has become a crucial requirement for most businesses these days because it provides immediate cash. Almost all industries at one point or another have to wait for their invoices to get paid and usually the terms are from 15-90 days. The waiting period can be a real problem because your business cannot function 100% if you donít have sufficient funds to take care of day to day operations.
Fortunately, there are companies that have revolutionized the concept of invoice factoring. Itís very widely used among the health care, construction, wholesale, manufacturing, and pretty much all other industries that we know of.
How It Works
You can obtain invoice factoring quotes from the Internet and a quick search online will lead you to numerous companies offering this particular service. In essence, invoice factoring gives you the option to sell your invoices to them for up to 90% the value of the invoice. Usually, the processing time only takes 1 to 3 business days and the amount will be deposited in your account right away.
Of course you can only sell the invoices of credit worthy clients. The factor doesnít check your credit rating but it does check the credit rating of your clients. Once your client has paid the full amount of the invoice, the factor then gives you the remaining amount less the fees that they charge.
Who Should Consider Invoice Factoring
As mentioned, perhaps all other industries can benefit from invoice factoring. With it, you donít have to worry about how you can procure materials, stock up on inventory, pay your employees, pay your office rent and so on. When youíre running low on cash, operating your business can be hard. But with factoring, youíll never have to stress yourself out on this particular concern again.
Choosing Your Factor
The key is in finding the right factor. There are dozens of factors that you can find online but if you want to make the most out of invoice factoring you have to be careful in choosing the financial provider. Take the time to compare quotes, read customer testimonials and learn as much as you can about the company. Donít be too quick to make a decision and always read the fine print before affixing your signature.
Another aspect that you really need to take into consideration is the industry you belong to. Itís important that you choose a factor that specializes in your industry. For example, if youíre a building contractor, you should choose a factor that offers their services specifically to contractors and construction companies. Theyíre the ones who are familiar with how your business works and itís less complicated to deal with them than those who specialize in other fields.
If youíre looking for an invoice factoring company, you should check out NeeBo Capital. The great thing about this finance solutions provider is that they cater to almost every industry. They have invoice factoring services for medical and health care businesses, recruitment agencies, manufacturing companies, freight forwarders, advertising firms, auto mechanics, cleaning services, IT services, restaurant suppliers and a whole lot more. They also have one of the lowest rates that you can find online.
Why Choose Us?
Rates at 0.59% - 1.5% for 30 days
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General Articles about Accounts Receivable Financing and Factoring:
» 08/01/2012 Debt Financing or Off Balance Sheet Financing?
» 09/15/2011 What to know when selecting a Factoring Company