Is Invoice Factoring an Affordable Business Financing Solution?
In short, yes. Provided that your company meets certain criteria. Invoice factoring has been gaining popularity as a tool to finance growing businesses. It is a solution that accelerates payments from slow paying clients, freeing up cash flow and allowing companies to grow. By eliminating the uncertainties of when theyll be paid, business owners can use factoring to stabilize their business and put it on a growth path. However, factoring is not for everyone. For factoring to work, your business must meet certain criteria: 1. It must be established and have commercial or government (not consumer) sales 2. Your profit margins must be at least 12% or higher 3. Your biggest problem must be that clients are taking too long to pay their invoices If you fit these criteria, then there is a chance that factoring financing will be a good solution for your business. It may not be as inexpensive as a business loan, but certainly will be significantly more flexible and easier to obtain. Factoring w
