Three Advantages of Working with a freight Invoice Factoring Company
In the current post-recession economy, many business owners have been forced to delay plans to expand their businesses because of a lack of funding. Often customers do not pay their invoices until more than a month after the work has been completed and the bill has been received. To counteract the setbacks associated with inconsistent cash flow, many business owners are finding alternative sources of funding. One of the most successful ways to ensure that your company runs smoothly and that invoices are paid promptly is invoice factoring.
freight Invoice factoring is the process of settling outstanding payments by selling invoices. An freight invoice factoring company purchases your invoices for less than the amount due on the invoice and advances the payment to your company. Your customer then owes the amount of the invoice to the invoice factoring company. The immediate payment of your invoices ensures that day-to-day expenses can be met and new orders can be filled without delay.
There are three main advantages to hiring an invoice factoring company:
Immediate Cash Flow
The most important advantage of hiring an freight invoice factoring company is that you are paid immediately for every invoice that your company generates. With invoice factoring, you can receive immediate cash instead of waiting for your customer to pay. This is often vital to the growth of many businesses.
When you use an freight invoice factoring company, the immediate cash flow can be used to pay employees and fund day-to-day business operations. Many business owners also turn to an invoice factoring company as the perfect solution to all the headaches associated with collections.
Often clients and customers take many months to pay an invoice. This delay can create cash-flow problems, especially when you are still incurring everyday business expenses. When invoices go unpaid for a prolonged period of time, it is often necessary to turn an account over to collections to recoup losses. With invoice factoring, you can get immediate cash whenever required.
Using an invoice factoring company also minimizes valuable time and resources spent on debt collection. Your employees can instead dedicate their time in other tasks that are designed to help your business run smoothly. Using an invoice factoring company can facilitate your business’ steady growth and enable you to always have the funds to secure new clients.
Securing New Clients
For some types of services, it is necessary to have funds on hand in order to accept new customers. Materials and funds to pay workers are often needed long before the customer’s invoice is paid. One of the most frustrating moments for a business owner is having to turn down a large order due to a lack of funds. Using an invoice factoring company give you the upfront cash you need to prevent these potential clients from going to one of your competitors. The consistent and continuous cash flows facilitate the steady growth of your business.
If you need a committed freight invoice factoring company, EZ Freight Factoring is your solution. Ez Freight specializes in invoice factoring, helping manufacturing, distribution and service companies, including freight transporters, to grow and prosper. They is strongly committed to providing businesses with convenient invoice factoring to solve their cash flow challenges.Read More