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Invoice Factoring Companies in New Jersey
Many New Jersey 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 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%.
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, 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 New Jersey
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in New Jersey we could find include CBC. They provide both recourse and non-recourse factoring to suit a wide number of business needs. 1st Commercial Creditis another invoice factoring service that New Jersey residents have recommended. They work with a number of industries, including construction, manufacturing, and trucking. Finally, you should consider looking into Lendvo. Lendvo has a fast approval process and specializes in online 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 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.