There are many ways invoice factoring can help your business. Below are some key reasons to consider.
1. Grow Your Business Faster
Collect cash much quicker so you can purchase more goods to sell, take on more projects, invest in more resources, or accept vendor early payment discounts.
2. Drive Through Difficult Financial Times
During a weak economy or unfortunate business circumstances, improving your cash flow can be very helpful to operate and move forward.
3. Lower Capital Costs
Even if your cash flow is good, consider your capital costs. If you're borrowing money at a rate exceeding 8% per annum, you may want to consider factoring invoices with Sunway Credit. The cost of invoice factoring might be lower than the cost of borrowing.
4. Avoid Incurring Debt
Invoice factoring is not a loan, so your company does not incur debt. Invoice factoring is a financial transaction, in which a company sells its invoice. Thus, no debt is added onto your balance sheet, and you do not have to make any monthly payments.
5. Easier Application Process
Compared to getting a bank loan, opening an invoice factoring account is typically much easier. You do not have to qualify for a loan or provide collateral.
6. Spend Less Time On Account Receivables Management
With invoice factoring your company sells its invoice to collect cash significantly quicker. This means there is less pressure to chase and collect payments.
7. Run Your Business Without Interference
If you raise money through loans or equity, there is a greater chance of external people interfering with your business operations. With factoring, you're just converting invoices into cash.
8. Control Your Cash Flow
With invoice factoring, you have a lot more control over your cash flow. You don't need to factor all your invoices; you can choose to factor one or a bundle. It's your choice.
Lastly, Be Prepared For Unexpected Issues
You might not need to factor an invoice immediately, but you may still want to open an account, so your company is prepared. Then, if you suddenly do want to improve cash flow in the future, you can factor at a moment's notice.
Contact us here, and we're happy to have a chat.