Invoice factoring solutions for your construction business

Author: Stephen Perl

Accounts receivable factoring is a financial product that is available for most businesses that need working capital in Ohio. Factoring can provide your construction business with debt free cash flow, though: real, year in business, or the credit situation. Funding criteria is based primarily on the creditworthiness of its customers.

Factoring works: The factoring company buys invoices that qualify at a discount, and immediately proceeds to ninety percent of the balance owed to the seller. A few hours after the presentation of its accounts receivable, a company lacks cash can obtain working capital to use as needed:

  • Business Development
  • Hire employees
  • Maintenance margin
  • Purchase of equipment
  • Paying taxes

The balance is held in a reserve account and forwarded to the company as soon as picked up the bill - minus the small fee. Sounds simple?

Unfortunately, many small businesses are overlooked for a factoring service / R, which is ironic because factoring is often the most ideal for cash flow dilemma solution. While not all companies a great perspective of factoring, the vast majority of them are.

To ensure that your experience of factoring is simple, effective and affordable, there are three things you should insist on:

A flat rate

This takes the guess work out of the process. You know exactly what you are paying for the service.

Zero interest

A true factoring is a debt free financial solution. There is no advantage to amass rolling interests.

Financial stability

Make sure your factoring company provides cost effective solutions. In fact, a invoice factoring company owned by a bank makes a great financial partner, as they are regulated federally insured by the FDIC, and provide professional services and client.

Conversely, if you find any of these traps, must immediately "head for the hills" (seriously, avoid these problems):

Rolling interest

Avoid all interest rates. Factoring, done the right way, not a line of credit. It is a specialized financial product designed to provide free debt solutions for companies who need extra money.

Hidden fees

Be sure to ask all possible factoring companies: This is my only payment? If they say no, or trip or appear evasive on this issue, run, do not walk, run. You can find a better opportunity that will not cost a small fortune.

If your business needs cash flow quickly, put your invoices to work for you. Why wait 45, 60, even 90 days, when taken can provide instant access to financing for all your business needs. Find a factoring company trusted and get straight forward, no solutions of interest to their cash flow problems - without adding debt.

For more information about www.invoicefactoringus.com