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Invoice Factoring Companies in Oregon
Many Oregon businesses have been looking for ways to improve their 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 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 Oregon
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Oregon 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 Oregon residents have recommended. They work with a number of industries, including construction, manufacturing, and trucking. 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 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 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 lets you measure the creditworthiness of your customers. This can be a gamechanger if your business is trying to choose between two different projects to work on.
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.