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Invoice Factoring Companies in Michigan
Many Michigan 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%.
While many companies can benefit from invoice factoring, it isn’t for everyone. In some markets customers may be put off by or leery of paying a third-party bill, and others don’t have the right client base for invoice factoring to work. 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 Michigan
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Michigan we could find include Factor King. They have low discount rates, but high initial funding, which makes them perfect for growing businesses. 1st Commercial Creditis another invoice factoring service that Michigan residents should look in to. 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 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 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 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.
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.