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Invoice Factoring Companies in Virginia
Many Virginia 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.
What Is Invoice Factoring?
Invoice factoring is a service provided by companies whereby the company buys your invoices and pays them at a discount rate. Then, once the factoring provider collects on the invoice, you get paid the remainder minus the factoring company’s discount rate. Initial funding can be as much as 98% and the discount rate ranges from .5-1.5%.
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 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 Virginia
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Virginia we could find include Factor King. They have low discount rates, but high initial funding, which makes them perfect for growing businesses. CIT Commercial Servicesis another invoice factoring service that Virginia residents have recommended. They have more than 100 years of experience and offer a number of flexible factoring solutions. Finally, you should consider looking into 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 invoice factoring is available to companies that have a less than stellar credit record, or aren’t big enough for a bank to work with. This can help jump-start the growth of a small business.
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.