The first thing I like to do is nail down exactly what invoice factoring is. It’s a way to convert your outstanding and future invoices into immediate cash and/or lines of credit without loading up your balance sheet with a bunch of debt. The nice thing about invoice factoring is you get the cash you need without creating a monthly payment to the bank or giving up equity in your business. Because you get access to your money faster, you can speed up your business cycle and use the additional cash as you see fit. Say, to buying inventory or raw materials more frequently, cover payroll or pay outstanding bills.
In fact, there are a whole lot of benefits available from invoice factoring. Here are just a few:
- More money in your account without debt on your books. That’s a good thing, especially if you later need a business loan. In general, the fewer liabilities you have, the greater your access to credit.
- Your business doesn’t need to have strong financials to do invoice factoring, also known as accounts receivable factoring. Frankly, you’ll be approved with us as long as your customers have a good record of paying their invoices. We typically approve 92 percent of factoring application requests received. If you have one or two stinkers on your invoice list, we can simply omit them when deciding which invoices to factor. That way, the bad apples won’t ruin your ability to access fast cash based on your experience with good customers.
- You can feel free to give your customers generous payment terms, because you know that you’ll be receiving your cash promptly. That’s a great way to build customer loyalty and encourage repeat business.
- We do the heavy lifting. We offer professional invoice factoring services such as receivables management and, when necessary, collection services. Our extensive experience makes us pretty effective at ensuring your customers fulfill their obligations, and we save you the time and hassles of trying to collect on your own.
- Invoice factoring is one of the most efficient ways to raise working capital quickly. We’ll discuss the terms with you in detail, but suffice it to say you get the vast bulk of your invoiced amount up front, usually 70 to 90 percent within 24 hours. Once your customer pays the invoice, you receive the remaining 10 to 30 percent of the invoice amount minus our factoring fee.
- The amount of capital available to you through invoice factoring grows as your sales grow. It’s easy: sell more, factor more. That’s a great incentive to build and expand your business. And don’t forget, Alpha Capital can offer you additional services to help your business grow.
- We make invoice factoring convenient. Our application form is a simple one-pager that you can fill out in five minutes or less. Once on-board, you can check your current account status 24/7 via our online Client portal.
Alpha Capital is a leader among invoice factoring companies, because we do what banks don’t – providing you money quickly and hassle-free. Contact us today!