Why Do Factoring Services Matter?

July 22, 2020

Factoring services are one of the most beneficial services businesses can take advantage of when it comes to keeping an operation running smoothly. Both small- and medium-sized businesses that need cash benefit from factoring, as it gives companies the much-needed stability between the time your services are complete and you receive a client’s payment.

Here’s why these services matter, and how BP Financing can help you.

What Are Factoring Services?

When you provide your invoices to a factoring company like BP Financing, they then factor the cash you need while you wait for payment from your client(s). While each case is different, your company can receive up to 95% of your invoice’s value—often with same-day funding.

The cash injection helps your company maintain any large inventory or materials needed to feed your production and keep your business moving without interruption. Factoring also provides significant relief in the middle of a long-term sales cycle, buoys volatile cash flow, and adds a layer of confidence during sales seasons that are more sluggish than others.

Capitalize on the Unexpected

Specifically, however, factoring provides immediate relief for circumstances you may least expect, both positive opportunities and financial challenges. Even if your firm has been in operation for decades, it can be difficult (if not impossible) to predict these types of challenges.

If you have a customer that comes to you with a timely and financially advantageous need, you may not have the cash to scale your production or offer the additional services needed to meet their demand. Factoring helps you get the money you need to capitalize on this unforeseen opportunity, affording you not only more income, but the chance to impress, please, and retain that customer for years to come.

Grow and Scale with Confidence

For some companies, the chance to expand overseas or into new domestic markets may come suddenly and with a limited window to act. While all global markets have been impacted by COVID-19, some markets will recover faster than others and, when they do, your business may find an opportunity to expand into one or more of these markets.

This is, of course, difficult or impossible to do without the cash in hand. Whether it’s offering your product or services to new markets, expanding operations for a short-term project to test that market, or investing in new technologies abroad, factoring can help make it happen.

Get the Cash Your Need with BP Financing

Whether you’re a startup that’s growing and needing to scale quickly and responsibly, or you’re a seasoned business owner with decades of experience, cash is king when it comes to growing and maintaining your business’ health.

With more than 15 years’ experience in the freight industry, BP Financing has helped countless businesses get the cash they need to keep moving—and we can do the same for you whether a part or outside of the freight industry. Reach out to us today to learn more.

learn how factoring services can help your business