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    [post_date] => 2016-08-11 13:41:45
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As a small business owner, you know one of the most critical components of keeping your operation running smoothly is having good cash flow. Healthy cash flow enables you to pay your employees, produce new products, keep vehicles operating and provide services to your customers.

So, when you do business with another company and you don't receive payment from them on time, it can really throw your cash flow out of balance.

This is, understandably, a very frustrating situation, and one in which small business owners unfortunately often find themselves. Waiting to get paid for work that you have already done can really be stressful, especially when it eats into your current capital.

That is why many businesses choose to "sell" their current, unpaid invoices to a company that will finance them and give an advance of cash to the business owner. This process is called invoice factoring and it offers small business owners several advantages.

Invoice Factoring for Small Businesses

Waiting for invoices to be paid can cause major cash flow slowdowns, which means you can’t pay your vendors or funnel that money back into your business. When you have operating expenses, inventory costs, and other bills to pay immediately, these delays can jeopardize your business. As a business financing solution, invoice factoring provides cash to cover these costs and hold you over until your invoices are paid.

Invoice factoring makes your cash flow more predictable by loaning you money up front and using your unpaid invoices as collateral to secure the advance. When you need money immediately, you can sell your current, unpaid invoices to an intermediary that will finance them for you and give you a lump sum cash advance. Typically, you’ll receive about 85 percent of your invoice total immediately.

Once your customers pay the invoices, the lender charges small processing and “factor” fees for their services, and then returns the remaining balance of the invoices to the business owner.

Invoice factoring is perfect for business-to-business (B2B) companies such as manufacturers, IT companies, and professional services providers. Invoice factoring is a great alternative to constantly waiting for customers to pay you.

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Invoice Factoring

As a small business owner, you know one of the most critical components of keeping your operation running smoothly is having good cash flow. Healthy cash flow enables you to pay your employees, produce new products, keep vehicles operating and provide services to your customers.

So, when you do business with another company and you don’t receive payment from them on time, it can really throw your cash flow out of balance.

This is, understandably, a very frustrating situation, and one in which small business owners unfortunately often find themselves. Waiting to get paid for work that you have already done can really be stressful, especially when it eats into your current capital.

That is why many businesses choose to “sell” their current, unpaid invoices to a company that will finance them and give an advance of cash to the business owner. This process is called invoice factoring and it offers small business owners several advantages.

Invoice Factoring for Small Businesses

Waiting for invoices to be paid can cause major cash flow slowdowns, which means you can’t pay your vendors or funnel that money back into your business. When you have operating expenses, inventory costs, and other bills to pay immediately, these delays can jeopardize your business. As a business financing solution, invoice factoring provides cash to cover these costs and hold you over until your invoices are paid.

Invoice factoring makes your cash flow more predictable by loaning you money up front and using your unpaid invoices as collateral to secure the advance. When you need money immediately, you can sell your current, unpaid invoices to an intermediary that will finance them for you and give you a lump sum cash advance. Typically, you’ll receive about 85 percent of your invoice total immediately.

Once your customers pay the invoices, the lender charges small processing and “factor” fees for their services, and then returns the remaining balance of the invoices to the business owner.

Invoice factoring is perfect for business-to-business (B2B) companies such as manufacturers, IT companies, and professional services providers. Invoice factoring is a great alternative to constantly waiting for customers to pay you.

We add Value by adding to your working capital.

Additional funds enable small business owners to open new doors, whether they are starting a new business or growing an existing one. We offer a range of working capital options that add value to small and mid-sized businesses across the country.

Advantages of Invoice Factoring

Temporary issues with commercial cash flow are extremely common, even for the most profitable small businesses. Some business owners turn to big banks to alleviate this stress. However, big banks have longer and more complex application processes than invoice factoring companies, as well as hidden fees and lower approval ratings.

Invoice factoring helps you immediately turn your invoices into cash, so that you can invest it back into your business. Whether you need cash for taxes, payroll, or to start a new project, financing your accounts receivable helps to ease your financial stress.

Additionally, because you don’t have to worry about funding gaps from slow-paying customers, you can keep loyal customers on longer payment terms and improve your cash flow.

In addition to providing fast access to your cash, invoice factoring offers flexibility in the application process. While traditional business loans depend greatly on credit, collateral, and financial history, invoice factoring providers only care about the value of your unpaid invoices or your customers’ credit. Even if your small business doesn’t have an extensive credit history, invoice factoring can be a viable solution to cash flow challenges.  

Because you relinquish direct control of your invoices, many small business owners worry about the ethical implications of invoice factoring. However, Value One only connects you with the most ethical and trustworthy invoice factoring partners, so you can be sure that you and your customers will be treated with respect and fairness.

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We help you protect, grow and run your business.

Meeting the Financial Needs of Small Businesses

At Value One, we understand the challenges you face as you juggle the financial responsibilities of running your small business. That’s why we are committed to helping you succeed. By connecting you with the best financial services partners in the country, we provide you with all of the resources and tools you need to run a thriving business.

Value One gives you a one-stop shop for all of your small business needs, so you don’t have to fill out multiple different forms to find the best options. Whether you are starting a new project or filling seasonal cash flow gaps, we’ll help you find the perfect invoice factoring partner at a rate you can afford.

You can rest easy knowing that your invoices are in the hands of a trustworthy, reputable invoice financier and that your business will have the cash flow it needs to continue conducting business.

Call us at 855-248-5050 or complete the form below to take the next step toward your business goals.
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