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Invoice Factoring Companies in Alabama
Many Alabama businesses have been looking for ways to improve their working capital. One of the most popular ways for a company to speed up their revenue stream is invoice factoring.
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 Alabama
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Alabama we could find include Porter Capital. They offer 24 hour funding, as well as online reporting. TP Financial is another invoice factoring service that Alabama residents should look in to. They offer digital invice processing as well as online reporting and non-recourse lending. Finally, we recommend checking out The Southern Bank. They provide credit reports on customers, collections services, and 24 hour funding.
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 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.