How Invoice Factoring Works
When seeking the optimal choice for fast business funding, it is important to do your homework, but with so many options, things can get confusing. As a result, you may have many questions, such as how invoice factoring works.
Every business is different and there is no such thing as a one-size-fits-all answer for fast business funding. It is crucial to get all the facts about how invoice factoring works to decide whether it is right for your unique business needs.
The Advantages and Disadvantages of Invoice Factoring
Invoice factoring is the process where a finance company, or factor, agrees to give you cash now for an invoice you billed which has not become due. You give the invoice to the factor and, after ensuring that the invoice is valid, he gives you 80-90 percent of its value.
Then, when the invoice is due, your client will send their payment to the factor’s post office box, instead of directly to you. The factor will keep a portion of this payment and send the rest of the balance to you.
The advantage of this is, as long as you have accounts receivables, you will have access to quick business funding. On the other hand, this can take a long time to arrange and you might find it difficult to break the cycle.
Also, since your clients have to pay a factor, they will immediately know that your business is in distress. Consequently, they may think twice about doing business with you in the future.
Alternatives to Invoice Factoring
For a hassle-free alternative, you should turn to a cash advance company, like Financing Solutions (www.fundmypayroll.com). They will get you the cash you need in a fast, easy, and discrete way.
When using Financing Solutions, your clients still pay their bills to you, not a factor. Also, the application process is quick and simple so you can apply in just 15 minutes and have the cash in your account within 48 hours.
Most importantly, they offer a flexible repayment schedule. You can repay the money in a few weeks or months, as soon as your cash flow improves.
How you can Work Smarter, not harder
Obviously, you have worked hard to get where you are today. You should never have the feeling that you have done enough and can now rest on your laurels, but there are ways that you can slow down a bit by working smarter, not harder.
One thing you can do is to improve your focus. Each day, you should begin by choosing the top three tasks you need to get done. Anything not related to these items should be considered a distraction and you may be better served by delegating it to someone else. If this is not possible, you can at least put off the minor tasks until the major ones are done.
Another method is to establish a time to stop working every day. This will allow your brain to relax for a while and could even lead to an increase in your creativity and idea generation for your business. It may help if you plan something to do after work, like attend a sporting event, so you can begin to wind down.
The best way to work smarter is to contact Financing Solutions. They will give you the quick business financing you need to stop worrying about money and get back to growing your business.