3 critical factoring solutions for your small business
February 9, 2021
Being a small business often feels like an uphill battle. There are abundant obstacles that could impede you and your success. One such obstacle is money. Whether it’s availability or waiting on payments, there are few more crippling restraints. If you’re feeling this kind of pressure, it’s time to consider factoring solutions for your small business.
And, at BP Financing, we’ve been providing factoring services to companies in multitudes of industries. We just want to help you perform and grow your business, and we carefully assess the needs and capabilities of every client to tailor our services to their very unique circumstance. Here are 3 factoring solutions for your small business.
1. Immediate re-investment
Factoring is precisely the kind of cash flow solution that helps you expand your enterprise. Basically, you sell invoices to a company, like BP Financing. You’re then advanced a percentage of the original invoice, usually between 80% to 90%, but it can be as high as 95%. You then receive immediate payment within 24 hours, and the remaining percentage is returned to you as soon as your client pays (with the exception of a small factoring fee).
What makes this one of the best factoring solutions for your small business is it allows you to get money immediately after a transaction. Even if you and the client have agreed to a deferred payment, you’re eligible to receive an advance. This makes capital almost immediately available to re-invest. Whether you allocate it to new customer acquisition, R&D, or even logistics is up to you. You no longer have to wait or be constrained by financial limitations and client caprice.
2. Clients and customers
Factoring solutions for your small business are also fantastic for customers in virtually every facet. Firstly, large commercial and government clients often insist on 30- to 60-day invoice payment terms. This is difficult for small businesses who don’t have reserves of cash to wait that long. If you can’t offer such terms, it’s almost impossible to land bigger clients.
With BP Finance’s factoring services, you can offer these payment terms to your clients because you can receive an advance on these invoices almost immediately after they’ve been created. This means you can offer such terms with minimal financial risk to take on bigger clients.
This also has a benefit for you and your current client base that can’t be overlooked. By factoring invoices, you can receive advances and offer more flexible payment terms to work with them. This will engender loyalty and customer satisfaction, and it will ultimately help you cement your client-base for years to come.
3. Easier than getting a loan
Getting a loan or establishing a line of credit can be particularly difficult for small businesses. Since it often depends on business volume and net profits, it can sometimes feel impossible to get assistance from banks. And that’s where factoring solutions for your small business come in.
Firstly, you don’t need credit for factoring. In fact, at BP Finance, we don’t look at your credit at all. Instead, we assess your client to ensure they’re good for their invoice. And, on top of everything else, factoring requires minimal paperwork and time, and you receive your advance in 24-hours. You don’t accrue new debt or pay interest on your advance.
When banks try to debar you from your success and happiness, we’re here to provide you an alternate entry-point.
Get started now to receive an advance in 24-hours!
Contact us now to receive an advance within 24-hours! At BP Finance, we provide the premier factoring solutions for small businesses. And we pride ourselves on turning underdogs into championship caliber contenders in their respective industries.