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Invoice Factoring Companies in Illinois
Many Illinois companies are on the path to greatness, but could use a boost in the form of extra working capital. Invoice factoring is a fast and easy way to boost working capital without taking on a loan.
What Is Invoice Factoring?
Invoice factoring is a service provided by companies whereby the company buys your invoices and pays them at a discount rate. Then, once the factoring provider collects on the invoice, you get paid the remainder minus the factoring company’s discount rate. Initial funding can be as much as 98% and the discount rate ranges from .5-1.5%.
Invoice factoring isn’t for everyone. For example, if your customer base doesn’t have a good history, you may have problems getting approval for invoice factoring. Furthermore, some factoring companies may not work in certain markets. However, many companies have found that invioce factoring is a great way to increase their working capital and outsource accounts receivable services that they aren’t ready to have in-house.
Best Invoice Factoring Companies in Illinois
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Illinois we could find include Lendvo. Lendvo has a fast approval process and specializes in online businesses. 1st Commercial Credit is another invoice factoring service that Illinois residents have recommended. They work with a number of industries, including construction, manufacturing, and trucking. Finally, we recommend checking out Factor Funding Company. They provide fast approval, faster funding, and work with many small businesses.
Benefits of Invoice Factoring
The first benefit of invoice factoring is that companies don’t have to wait to receive payment for their services. This is especially important for companies that are growing and struggling to keep up with the contracts they have. Another benefit to invoice factoring is that it can save companies from having to add expensive staff and software to manage their accounts receivable. As a result, more capital can be focused on your core business processes, helping your business grow Invoice factoring is also beneficial in that it lets you measure the creditworthiness of your customers. This can be a gamechanger if your business is trying to choose between two different projects to work on.
As you can see, there are many benefits to invoice factoring. Check out some reviews and decide if invoice factoring is right for your business.