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Invoice Factoring Companies in Wisconsin
Many Wisconsin companies have a solid business model, but need more working capital to fuel their business. One solution that works for many companies 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 Wisconsin
While there are many nationwide and regional factoring companies, some are better than others. The best factoring companies in Wisconsin we could find include 1st Commercial Credit. They work with a number of industries, including construction, manufacturing, and trucking. Factor Kingis another invoice factoring service that Wisconsin residents have recommended. They have low discount rates, but high initial funding, which makes them perfect for growing businesses. Finally, you should consider looking into 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 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 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.
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.