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Invoice Factoring Companies in Washington D.C.
Many Washington D.C. companies have a solid business model, but need more working capital to fuel their business. Invoice factoring is a fast and easy way to boost working capital without taking on a loan.
Washington D.C.
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%.
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 Washington D.C.
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Washington D.C. we could find include CapitalPlus Equity. They don’t require long term contracts, and provide funding within 24 hours of buying an invoice. CBCis another invoice factoring service that Washington D.C. residents have recommended. They provide both recourse and non-recourse factoring to suit a wide number of business needs. 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 can save companies from having to add expensive staff and software to manage their accounts receivable. As a result, more capital can be focused on your core business processes, helping your business grow 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.
There are many reasons to try invoice factoring. Check out some reviews of these companies and see if they’re right for you.
