What Can a Factoring Company Do to Help Your Small Business?

If you are a small business owner, your main concern will naturally be how to effectively increase your profit margin while remaining free of debt. An essential part of staying out of the red is, of course, making sure that your customers and business partners pay you in a timely manner for the goods and services that you provide.

If, after receiving these goods and services, your partners then balk at paying you within an acceptable period of time, this creates a problem with your ability to pay your other outstanding expenses. This creates a chain reaction whose consequences can be very negative.

Broke small business owner
photo credit: Dan Moyle / Flickr

Is There A Way To Get Out Of Debt That Doesn’t Involve A Loan?

When it comes to getting your business out of debt, there are a number of options that are available for you to have recourse to. All too many small business owners will tend to think that the best and fastest solution is to take out a loan from a bank or other lender in order to get them quickly out of debt. However, this is not always the best solution. Even if you do get fast cash upfront, you may find that you are taking on a huge burden of interest that will quickly come back to haunt you.

There are other and better ways of securing fast cash, including dealing with a factoring company.

Factoring Your Invoices Is The Smart Way For Your Business To Raise Money

Factoring companies, such as Factor Finders among many others, do not function in the same way as a financial lending institution – especially a shady and dangerous “pay day loan” center. A factoring company doesn’t charge crazy high rates on the loan that they grant you, for one simple reason: There is no loan.

A factoring company simply buys up all of your outstanding invoices and then pays you a certain cash amount on the value of them. After this transaction is completed, the factoring company owns these invoices, and will contact all of your debtors to pay up what they owe.

Factoring Your Invoices Takes The Burden Off Of Your Shoulders

Factoring your invoices will very quickly take the burden off of your shoulders and the hassle out of your hands. You no longer have to worry any more about when a certain business partner intends to finally settle up for the amount of money they owe you. Instead, you turn all of the relevant invoices over to a factoring company, take the cash up front, and let them worry over the best way to get it.

All of the stress and hassle of being an unpaid creditor is thus lifted from your shoulders, with no further debt or obligation. It’s an arrangement that works wonders for a small business owner.

Accounts receivable factoring offers business healthy cash flow

Factoring Gives Your Small Business The Freedom To Grow And Expand

Getting rid of your invoices using the process of factoring is a true win/win situation for your small business. At the stroke of a pen, you get rid of a massive mountain of unpaid invoices that was causing you to fall into debt or into a possible bankruptcy. Meanwhile, the upfront cash that you score in a successful factoring deal gives you money to expand and grow your business.

Getting rid of the outstanding invoices that were hurting your productivity and profitability is no small thing, and you can do it with an arrangement that requires no collateral and incurs no future interest debt.

How Factoring Can Expand Your Options For Growth And Profitability

Whether purchasing more advertising space or giving the green light to a whole new range of goods and services, the expansion of options that you get with a factoring deal is a precious source of freedom and independence that no small business owner can afford to give the cold shoulder to. The sky is the limit once you are free of the debts that are crippling you and ruining your chances for success.


The freedom you receive after you have made a successful arrangement with a factoring company is too good to make light of. This is the only fast cash arrangement that you can get without agreeing to provide collateral or to pay back money at a prescribed interest rate.

The arrangement is easy to qualify for, and is simply the best way to escape debt while pocketing cash that can pave the way for a new era of growth and success.