![]() Manufacturing, including apparel & textiles, toys, furnishings, electronics, luxury and non-luxury goods, Consider the following, non-comprehensive list of small businesses that could benefit from factoring services: What types of industries can take advantage of factoring for small business? Most B2B firms qualify as do some business to consumer (B2C) enterprises. So if you are a small business that provides a service or sells a product to a large corporation, you are likely a candidate for small business factoring. That is because the factoring company uses the credit assigned to your client as its determining criteria. Factoring for small business often eliminates the need to apply for a loan.īusiness to business (B2B) firms, in particular, is ideal for small business invoice factoring. By selling your receivables or invoices to a small business factoring company for a discount, usually for 8-20 percent of the value of the invoices, your business can collect on its invoice in days. Invoice factoring for small business, on the other hand, is an alternative financing option that has a simple application process that does not require a good credit score or taking on any debt. Lastly, loans require taking on debt that can prove costly and difficult over time.įactoring for small business can strengthen your cash flow Many startups or rapid growth businesses simply don’t have the time to wait for a loan. In addition to being difficult to obtain, the application for business loans is slow and time consuming. Yet business loans are not easy to obtain, especially for new, early-stage firms without a proven business history. You can get in touch by calling 0333 3583502, emailing or completing our contact form.Factoring for Small Business: Your competitive advantageīusiness loans are generally the first option companies think about when it comes to obtaining money for their growing firm. If you would like to discuss this service in more detail, please contact a member of the Goodman Corporate Finance team. We are proud to have been awarded the 2021 Invoice Finance Broker of the Year Award by Business MoneyFacts after being Highly Commended in 2020. We have recently been awarded ‘Highly Commended’ invoice finance broker of the year 2022. Invoice financing can ease problems associated with slow paying customers.The more money you make, the more funds you’re able to release.Ideal solution for growing businesses as the available finance facilities grow in line with your turnover.Simple application process and more straightforward to put in place than other types of business credit.Cost-effective – no minimum fees or lengthy commitments.Quick – immediate cash with the pay as you go option – particularly useful for unexpected cash flow issues.Read how invoice finance has helped Crusher Consumables release funds for additional stock and improve response times. for buying stock, furniture, advertising, or other marketing activities. The working capital released from this service can be used however you wish, e.g. In some instances, your money will be released immediately. Most importantly, utilizing invoice finance can offer short term working capital when your business needs it most. Pay as you go factoring (cash is secured against unpaid customer invoices).Business cash advance (cash is secured against future debit or credit card payments).Here at Goodman Corporate Finance, we offer two core factoring options for clients: You can read more about invoice finance here. This solves problems with cash flow and late payments. Firstly, invoice finance (or ‘factoring’) is a valuable financial service that is used to grow businesses by releasing cash tied up in existing invoices or future payments.
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