As a business owner, you expect your customers to pay their invoices in a timely manner. In fact, if they fail to pay their bill, it affects your company’s revenue. Luckily, with the help of an invoice factoring company, you don’t have to wait to collect payment from your customers to have money in your pocket. Here’s what you need to know about discount factoring in Kennesaw, GA, and how it can help your business to grow. What Is Invoice Factoring? Invoice factoring is also known as debt factoring and accounts receivable financing. This type of service is available to different businesses that provide goods and services to other companies or agencies. These businesses can sell the invoices that need to be paid to a factoring company. Usually, the factoring company pays around 80 percent of the invoice upfront and the other 20 percent after the invoice is paid. How Does Invoice Factoring Work? There are a few steps involved in invoice factoring. First, you must choose a reliable factoring service. Because you are dealing with possible revenue for your company, you shouldn’t trust this type of service to just anyone. Once you’ve chosen a trustworthy company, you then submit an invoice to the factor. The factor then reviews the invoice in question. Usually, they will perform some sort of due diligence to ensure that the invoice will be paid in the future. Once the factor approves the invoice, you will both sign an agreement. The initial dollar amount to be advanced and other terms will be determined in this agreement. Once the agreement has been signed, you’ll receive your funds. Typically, the factor will then send out a notice to your clients, notifying them of the invoice factoring that has occurred. From this point forward, your client needs to pay the factoring company for all future invoices. Once your client pays their invoice in full, the factoring company then releases the rest of the funds due to you. Invoice factoring is a great way to get the money your company needs sooner. Plus, it’s easier to qualify for than regular business loans. If you are considering invoice factoring, it’s important to choose the right company. Look out for hidden fees and high interest rates. With a reliable factoring company in Kennesaw, GA, advancing you the money that you need, you’re free to grow your business and increase your revenue.
Related Articles -
factoring, company, Kennesaw, GA,
|
