New startups typically face one common problem: managing cash flow. Oftentimes, you have expenses, but you don’t currently have the cash to cover them. This is a very common issue among new businesses, but there is a simple solution to it–factoring companies in Alpharetta, GA.
Factoring brokers essentially take your outstanding invoices and pay you what you’re owed by your clients. Then, they go and collect on the invoices themselves. How does this benefit your new business? Here are a few ways.
Get Cash Immediately
When you have invoices from many customers that you’re waiting to collect on, odds are that the money will slowly trickle in overtime as each client pays off their invoices. But, this does you little good when you need a large, lump sum of cash to cover business expenses on a specific date. Using a factoring service enables you to get all the money you are owed at once, rather than waiting for it to slowly come in. So, you can cover those expenses in full when you need to and keep your business running.
Avoid the Hassle of Collecting
When running a business, collecting on your invoices can be a real hassle. You may have to repeatedly call your clients and spend a great amount of your valuable time trying to collect what you are owed. But a factoring company saves you all of that time and aggravation. They’ll pay you right away, then do the hard work of collecting on the invoices. In a new business, you don’t usually have the time or manpower to spend on being a collections agent. With a factoring service, you can instead focus your time on growing your company.
Flexible Line of Credit
Because factoring is based on your accounts receivable, the amount you can receive can increase quickly as your sales grow. This makes factoring an ideal way to finance a rapidly-growing startup. If it’s something you’re interested in, then look for a factoring broker in Alpharetta, GA, to work with.