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Invoice Factoring Companies in Kentucky
Many Kentucky firms are primed for success, but can’t get the working capital they need to grow. One of the most popular ways for a company to speed up their revenue stream is invoice factoring.
What Is Invoice Factoring?
Invoice factoring provides fast capital because the factoring companies buys your invoices for an initial amount, usually 70-90% of their value, and then collects on the invoice. Once the invoice has been paid, your company gets the rest of the value of the invoice minus the factoring service’s discount rate, usually between .5 and 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, many companies can benefit from invoice factoring services, including those who are looking to increase their working capital without taking out a loan.
Best Invoice Factoring Companies in Kentucky
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Kentucky we could find include Factor King. They have low discount rates, but high initial funding, which makes them perfect for growing businesses. Interstate Capital is another invoice factoring service that Kentucky residents should look in to. They have one of the best discount rates around and will fund up to 100% of an invoice. Finally, we recommend checking out Crestmark. They offer recourse and nonrecourse factoring for a wide variety of industries.
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 doesn’t show as a loan on a company’s credit report. This can be a lifesaver for companies that may have had credit difficulties in the past but still have a solid underlying strategy. Invoice factoring is also beneficial in that invoice factoring is available to companies that have a less than stellar credit record, or aren’t big enough for a bank to work with. This can help jump-start the growth of a small business.
There are many reasons to try invoice factoring. Check out some reviews of these companies and see if they’re right for you.