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Invoice Factoring Companies in Pennsylvania
Many Pennsylvania companies have a solid business model, but need more working capital to fuel their business. One of the most popular ways for a company to speed up their revenue stream is invoice factoring.
Pennsylvania
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 Pennsylvania
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Pennsylvania we could find include CapitalPlus Equity. They don’t require long term contracts, and provide funding within 24 hours of buying an invoice. Lendvois another invoice factoring service that Pennsylvania residents should look in to. Lendvo has a fast approval process and specializes in online businesses. 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 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.
