Factoring is a type of business financing that allows you to bridge the gap between the time you complete your work and when your clients pay you, especially if you’re a small or medium-sized business that doesn’t have any additional capital to spare.
It’s helpful for companies in industries that often see a large window between invoicing and payment, and is especially crucial for businesses that need cash immediately to fund their day-to-day operations.
Think of factoring as an advance on your invoices, one that can reach up to 95% of their original value.
Interested in finding out more? Here are five benefits of factoring your New York company, straight from the freight factoring experts at BP Financing.
1. Get your payments faster
When you work with a factoring company, there’s no more need to wait for payments from slow-paying customers. Factoring also allows you to receive your funds faster than you would if you applied for a business loan as well.
In fact, in most cases, we’re able to give you the money you need on the same day you send over your invoices. Compare that to the average client, who can often take up to 45 days to pay your invoices.
2. Pay no interest on your funds
Compared to business loans, you won’t have to pay interest on the money you receive either. You get the funds that are rightfully yours right when you need it, without having to pay additional money for it or take on new debt in the process.
Additionally, you won’t have to deal with the hassle that comes with applying for a loan through a bank. No more worrying about your business’s credit score and any other requirements that a bank may impose on its potential loan applicants.
3. Reinvest your money as you see fit
Additionally, factoring gives you the opportunity to invest your money back into your business when you want to, instead of being forced to wait until your clients pay you. This gives you the freedom to take full advantage of new business opportunities when you come across them and take your organization to even greater heights.
4. Take advantage of dedicated customer service
If you’re experiencing issues with receiving your funds, our dedicated customer support team will do everything they can to help get your money to you on time. You’ll work with a real human on the other line, not a robot generating automated responses that don’t actually help you — especially during potentially stressful times.
5. Save time spent on collecting funds
Because we’ll take care of the collections process, you can dedicate the time you’d otherwise spend following up on invoices on more productive business activities. Imagine how many hours you can now put towards sales or marketing — with us as your factoring partner, you can now make it possible.
Contact BP Financing today
When you’re looking to factor your New York company, turn to the experts at BP Financing. Our factoring business allows companies that normally operate on net 30 day payment terms to pay their service partners immediately.
Because we specialize in accounts receivable financing, when you work with us, you can typically expect to receive your funds within the next 24 hours instead of the next 30-45 days.
If you’d like to learn more, schedule an appointment with a member of our team by filling out the contact form on our website. On the other hand, if you’d prefer to speak with someone directly, give us a call at (845) 352-3700 instead.