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Invoice Factoring Companies in New York
Many New York 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.
New York
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%.
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, 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 York
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in New York we could find include Fundbox. They provide free accounts and fast funding, making them great for small businesses. Crestmarkis another invoice factoring service that New York residents have recommended. They offer recourse and nonrecourse factoring for a wide variety of industries. Finally, we recommend checking out CBC. They provide both recourse and non-recourse factoring to suit a wide number of business needs.
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 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.
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.
