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Invoice Factoring Companies in Tennessee
Many Tennessee 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.
What Is Invoice Factoring?
Invoice factoring provides fast capital because the factoring companies buys your invoices for an initial amount, usually 70-90% of their value, and then collects on the invoice. Once the invoice has been paid, your company gets the rest of the value of the invoice minus the factoring service’s discount rate, usually between .5 and 1.5%.
Invoice factoring isn’t for everyone. For example, if your customer base doesn’t have a good history, you may have problems getting approval for invoice factoring. Furthermore, some factoring companies may not work in certain markets. 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 Tennessee
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Tennessee we could find include Fundbox. They provide free accounts and fast funding, making them great for small businesses. Crestmarkis another invoice factoring service that Tennessee residents have recommended. They offer recourse and nonrecourse factoring for a wide variety of industries. Finally, we recommend checking out CapitalPlus Equity. They don’t require long term contracts, and provide funding within 24 hours of buying an invoice.
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 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.
There are many reasons to try invoice factoring. Check out some reviews of these companies and see if they’re right for you.