Cash flow problems are one of the main reasons that many businesses fail. Invoice and accounts receivable factoring with Charter Capital can potentially provide you with instant cash for every single invoice. We act as an outsourced credit department, handling the collection and processing of payments for invoices, which enables you to grow your business without the stress of having to manage your cash flow.
1. Getting started
If you’re running a startup, you’re probably fully aware of how difficult cash flow can be. Oftentimes it seems like just when things get going, you’re already out of cash. Charter Capital’s invoice factoring services can help your business fill the cash flow gap as you get started.
2. Keeping your business going
Once your business is up and running, it is likely that you will still experience ongoing challenges with cash flow. Your invoices might begin to pile up, remaining unpaid for 60 to 90 days, sometimes even longer. Trying to continue your business with the lack of revenue from outstanding invoices can significantly deplete your cash flow. Working with a factoring company can immediately boost your cash so you can keep your business going. For many companies, there is a significant amount of capital tied up in accounts receivable. Using invoice factoring will free up these assets, and convert them into immediate cash for your growing business.
3. Lowering warehouse management costs
Factoring enables businesses to get cash before their invoices even collect, cash that can be used to increase their inventory, for example. Businesses can receive significant discounts when buying inventory in large quantities and these savings often outweigh the costs of Invoice and accounts receivable factoring. The cash from factoring can be used to prepay your vendors, or to pay vendors COD giving you the flexibility to negotiate price reductions or even invoice discounts for prompt payment. You can also use the cash to reduce the incoming costs of freight shipments by prepaying the freight company.
Factoring will improve your purchasing department’s position with vendors, as prompt payment gives your company a positive payment history. A decent payment reputation enables your company to negotiate more favorable agreements with vendors, making it even more acceptable to vendors to prepare and hold goods until your company is prepared to take the shipment.
4. Keeping up with payroll
Factoring can help your business pay its payroll. A good example is a staffing company: These companies start upside-down in cash and have to pay employees weeks, often months, before they are paid by clients. Factoring turns your accounts receivable and invoices into immediate cash. Therefore, it’s easier to make sure your people are being paid what they deserve on a regular basis. You get back valuable time when you aren’t dealing with invoice processing, which allows you to fully focus on your growing business, employees, and customers.
5. Capitalizing growth
Your business can benefit from capital expenditures when you work with a factoring company. Invoice factoring with Charter Capital could allow you to purchase new equipment, expand your warehouse or business, and make big marketing investments.
The factoring company basically accelerates the payments you would otherwise receive if you were to wait to be paid from your customers in the ordinary course, essentially providing you the cash tied up in your open invoices or accounts receivable for services you have already provided or for product you have already delivered. Working with Charter Capital frees up your time and resources, allowing you to focus 100 percent on the growth of your business instead of dealing with invoices, collections, and accounts receivable.
Get a free quote today from Charter Capital, and receive fast cash for your growing business! There are no obligation fees for completing our invoice factoring application, or receiving a quote.