Should I use factoring services for my small business? Yes, this is why
An unfortunate part of running a small business is that you’re often running your operation by depending on the next invoice payout from your clients. However, not all your clients are going to be the best about making payments on time and others will be downright habitually late. At BP Financing, we can help remedy this problem with factoring services for small businesses. We can pay you for your outstanding invoices so you don’t have to rely on that money coming in from somewhere else. If you’re unsure whether factoring services are right for you, read our guide to learn more.
Get cash when you need it
When you’re waiting for a client to pay on an invoice, you might be missing out on money that you need to pay your electric bill, rent, or even another vendor you work with. There are things in life that won’t wait for you simply because you haven’t gotten paid yet. Factoring services will ensure that you have the money you need when you need it so you don’t fall behind on paying your utilities, rent, or another company you work with.
Maintain positive relationships with your clients
No matter how reliable they are or are not, your relationship with your clients is a big part of what keeps your business moving. Factoring services can help you keep your relationship positive despite their not paying on time for invoices. This works because you won’t feel like you have to keep hounding them to pay their invoices and you won’t have any ill feelings toward them. Do they still need to pay their invoices? Of course, they do, that would be bad business. But the urgency and stress of your working relationship will be more relaxed.
Stay away from loans
Business loans can often be a viable solution when you’re short on cash. Whether it’s because you have slow clients or you’re in a period of rapid growth, a business loan is an effective method for getting the money you need. However, these loans often come with high interest rates and you end up paying considerably more with interest than if you’d had the money in the first place.
At BP Financing, we understand that a business loan can be a tempting route to go but we believe factoring is a better method, fiscally speaking. We won’t charge you interest on repayment as we know you’re good for the money once your client pays out their invoice. Additionally, factoring isn’t any extra debt that you accrue on your credit score.
Pay your employees on time
Not only is it important to pay your bills on time, but it might also be even more important to pay your employees on time. Employees can lose trust in their employer in a matter of hours if their paycheck isn’t deposited the day that it’s supposed to be. A single missed payday can be a major red flag and you’ll start losing employees right away as they can start to feel that the first missed paycheck could lead to more.
Contact us to learn more
Get in touch with us at BP Financing today to get more information about factoring services for small businesses. Our team wants to see you succeed so we can help you get the money you need when you need it. We have 15 years of experience providing truck companies with factoring services and can do the same for you. Give us a call at 845-352-3700 or send us a message using our online contact form. We’re here to help and look forward to working with you.
