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Invoice Factoring Companies in North Dakota
Many North Dakota companies are on the path to greatness, but could use a boost in the form of extra working capital. One of the most popular ways for a company to speed up their revenue stream is invoice factoring.
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%.
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 North Dakota
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in North Dakota we could find include Crestmark. They offer recourse and nonrecourse factoring for a wide variety of industries. Fundboxis another invoice factoring service that North Dakota residents should look in to. They provide free accounts and fast funding, making them great for small businesses. Finally, we recommend checking out Paragon Financial. They provide 90% initial funding, as well as payroll financing services.
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 allows companies to outsource their accounts receivable process at a fraction of the cost of other alternatives. As a result, companies can save money on hiring as well as expensive software packages. 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.
There are many reasons to try invoice factoring. Check out some reviews of these companies and see if they’re right for you.