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Invoice Factoring Companies in New Mexico
Many New Mexico companies have a solid business model, but need more working capital to fuel their business. One solution that works for many companies 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%.
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 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 New Mexico
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in New Mexico we could find include CapitalPlus Equity. They don’t require long term contracts, and provide funding within 24 hours of buying an invoice. Interstate Capitalis another invoice factoring service that New Mexico 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 Factor King. They have low discount rates, but high initial funding, which makes them perfect for growing 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.
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.