Please ensure Javascript is enabled for purposes of website accessibility How Factoring Helps Businesses Start the New Year Strong

How Factoring Helps Businesses Start the New Year Strong

By December 22, 2022Factoring

Businesses spanning every industry are looking for ways to position themselves to start off 2023 in the strongest position possible. The current economic climate is complex, to say the least. Supply chains are tight, the cost of materials is rising, yet consumers seem to be undeterred in their purchases. Businesses need an inflation-resistant solution that will allow them to gain a competitive edge without taking on debt, impacting their credit ratings, or forcing them to pass on the bulk of expenses to their customers. For these reasons and more, businesses are using invoice factoring now and into the new year.

1. Loans are not the answer

Even under the best economic conditions, businesses do not want to take on extra debt. Debt-based loans place a strain on cash flow and can limit growth potential in the process. A business that is looking to grow in 2023 will be held back if the revenue is split between overhead, expansion, and additional loan installments. On the other hand, invoice factoring does not place any debt on the books, allowing businesses to accelerate cash flow while retaining revenue.

2. Catch up on accounting

Businesses want to start off the new year with as much capital on hand as possible. Unfortunately, businesses that issue invoices with staggered payment schedules of 30, 60, or 90 days will be entering 2023 with outstanding receivables from sales made in Q4. Invoice factoring turns those receivables into cash quickly and efficiently, which automates the accounting process and allows businesses to eliminate the long lag between sales and receiving payments from customers.

3. Improved credit ratings

No one wants to start off the new year with impacted credit ratings, but any business that took out a loan understands that lower FICO scores makes it harder to get good pricing from suppliers, and can increase bank turndowns for other financing requests, such as lines of credit. Invoice factoring does not impact credit ratings. In fact, businesses that use invoice factoring can preserve their credit scores and use the accelerated cash flow to lower their existing debts, thereby raising their scores quickly.

4. Better financial standing

Invoice factoring places businesses in a better financial position, allowing them to roll out plans for growth and providing the capital necessary for marketing, equipment, inventory, and covering overhead expenses. Because of the fast turnaround, businesses that use invoice factoring to turn unpaid receivables into cash accelerate their cash flow. This allows businesses to not only cover expenses, but also build up capital reserves so they can act on plans for growth and take advantage of tome-sensitive opportunities without needing to rely on debt-based loans.

5. Insight into your customers

Businesses need every advantage they can get. Knowing more about your customers can impact everything from large sales to partnerships and much more. Invoice factoring from Single Point Capital comes with a suite of tools to manage and track payments, as well as insight into the creditworthiness of your customers. Knowing their credit standing help inform your decisions so you can enter into larger sales agreements, reduce engagements, or court larger accounts.

6. Ongoing support and account management

When your business uses invoice factoring from Single Point Capital, you get a partner who will offer information, guidance, and support. Traditional lenders only show their concern when payments are late, and if you have a question, you have to deal with automated menus and pre-recorded voices that do not really offer the help you need. At Single Point Capital, we believe that people should help each other. Every business gets a real live personal account manager, and there will always be a real person available to answer your questions and provide the information you need.

7. Minimal paperwork

Implementing invoice factoring from Single Point Capital is fast, simple, and easy. We do not require original invoices, so businesses can simply send us electronic copies and we will process them for factoring and make finds available within a single day.

Place your business in the best position possible for 2023 with invoice factoring from Single Point Capital. Whether you are looking to boost cash flow, build up capital, reduce debt, or any other many advantages mentioned above, our team can help. Contact Single Point Capital today to get started.

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