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Invoice Factoring Companies in Rhode Island
Many Rhode Island companies are on the path to greatness, but could use a boost in the form of extra working capital. One solution that works for many companies 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 Rhode Island
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Rhode Island we could find include Lendvo. Lendvo has a fast approval process and specializes in online businesses. Crestmarkis another invoice factoring service that Rhode Island residents should look in to. They offer recourse and nonrecourse factoring for a wide variety of industries. 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 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 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.
If you think invoice factoring might be the solution your business needs, then you should check out some of our reviews to find the best invoice factoring company for your business.