Small to midsize business
Helping SMBs grow without worrying over cash flow
What is a small business factoring service?
We realize how difficult the situation can be for small to midsize businesses (SMBs) due to the customers who delay the payments. Payments are generally given after 45 to 60 days and may even reach up to 90 days. In such cases, SMBs may find it difficult to take up any other project or even complete the same project due to a lack of funds. These companies are thus forced to stop their work until the payment is made. This reduces the growth potential of the business no matter how brilliant the idea of the business is.
Businesses are now relying on the various types of financial factoring services to ensure that the lack of cash flow funding doesn’t hamper a particular business’s growth. Factoring for small and medium businesses helps them a great deal, increasing their cash flow rate and eventually leading to faster growth of the business.
We at Factoring Compass offer a variety of services to help your company. We have a complete team who have specialized knowledge and experience of all the services related to factoring for SMBs. We have been in the field of business funding for several years, and so far, we have helped over 5000 small and midsize businesses manage their working capital.
What is factoring for small businesses?
Factoring for small businesses and midsize businesses is a type of financing and an excellent cash flow solution for businesses ranging from owner-operators to midsized fleets. It is the method of financing where the business sells its bills receivable invoices to a factoring company.
The financial factoring company (us) then transfers a certain percentage of the invoice’s amount to the client company (you). Later on, when the client finally pays the full amount on the invoice to the factoring company, it pays the rest percentage of the invoice amount to the client company after deducting the fee for the business funding provided.
In simple words, invoice factoring is a means for businesses to obtain immediate capital based on future revenue.
Invoice factoring services are fast and straightforward and offer small and midsize businesses an opportunity to grow. These financial factoring agencies come in handy to those businesses who have had trouble qualifying for other financing firms. It is one of the best and smartest alternatives to bank loans.
How does factoring of small and midsize businesses work
The credit history of your customer determines the approval of the financial factoring. We start by analyzing the financial strength of your customers using the factors to determine the risk. We ensure that the customer who owes you the money on the invoice has a satisfactory repayment history. Once the factoring company approves your customer and the authentication is done, your cash flow starts. You then need to submit the invoice to the factoring company, and within the next two hours, you are likely to receive the cash.
Invoice your customer
After providing the products and services to your customer, you issue an invoice for them to pay. (note: these invoices must be payable within 90 days as it is one of the qualifications grounds for the business funding of small business)
Sell and assign the invoice
Issuing of advance
Customer completes payment
Payment of remaining amount
Once your customer has paid the whole amount of the invoice, we will pay the rest of the money to you, excluding the fee amount for our financial factoring services.
Benefits of financial factoring for SMBs
It’s pretty easy to qualify for financial factoring because it doesn’t look into our background. It looks into the customer company.
Growth of business
With invoice factoring or financial factoring, you gain working capital, which grows with your business.
No extra debt
As opposed to bank loans, the financial factoring companies won’t result in any extra debt on your company. There is no payment to be made by you.
No payment, no fees
Why choose us?
Our company ensures you don’t have to worry about money when it comes to paying us. The price of our services is quite nominal and reasonable. We constantly strive to offer you the best possible deal so that you feel at peace when you invest here.
Variety of services
We, at Factoring Compass, provide a wide range of services and ensure that we can help our clients in any way possible.
We have been in this field for several years now and have served more than 5000 SMBs. Our extensive experience in financial funding and factoring allows us to help our customers in any way possible to ensure that their business grows manifolds.
Built specifically for your satisfaction
All these years, we have ensured that we provide the best product and services to small to midsize businesses. Our products and services speak for us and our dedication towards our clients’ success. We do the grunt work as you enjoy the efficient operation of your business.
You may not need our services today, but knowing your options is always a smart thing to do.