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Invoice Factoring Companies in Arkansas
Many Arkansas companies have a solid business model, but need more working capital to fuel their business. Invoice factoring is a fast and easy way to boost working capital without taking on a loan.
Arkansas
What Is Invoice Factoring?
Invoice factoring is when a you sell your outstanding invoices to another company to collect. That company then pays you most of the value of your invoices, collects the amount owed, and then pays you the remainder minus their discount rate. Most initial funding is between 70-90%, and the discount rate is usually between 0.5-1.5%.
Not everyone stands to beneft from invoice factoring though. Some companies may not have invoices large enough to justify factoring, and others may worry that customers will be nervous about paying a third party. However, invoice factoring can be the best solution for many companies looking to expand their business, but that lack the working capital to do so.
Best Invoice Factoring Companies in Arkansas
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Arkansas we could find include Lendvo. Lendvo has a fast approval process and specializes in online businesses. Paragon Financial is another invoice factoring service that Arkansas residents might consider. They provide 90% initial funding, as well as payroll financing services. Finally, we recommend checking out Interstate Capital. They have one of the best discount rates around and will fund up to 100% of an invoice.
Benefits of Invoice Factoring
The first benefit of invoice factoring is that a company can get paid immediately for work that may not be finished for a long time. As a result, businesses can get the operating capital they need to hire staff, purchase inventory, or buy raw materials. Another benefit to invoice factoring is that it allows companies to outsource their accounts receivable process at a fraction of the cost of other alternatives. As a result, companies can save money on hiring as well as expensive software packages. Invoice factoring is also beneficial in that it allows companies that have no credit history, or a bad credit history, to get the working capital they need to grow their business. Many startups are built on the back of invoice factoring.
There are many reasons to try invoice factoring. Check out some reviews of these companies and see if they’re right for you.
