How Debt Factoring Can Improve Your Business Cash Flow

February 18, 2020

The most important aspect of running a business is getting paid. Money is the oxygen and the lifeblood of any business. Delays in payments can cause problems, or even cripple a business. 

Most small and medium sized businesses require consistent and predictable cash flow to meet obligations and to take advantage of opportunities. Slow payments can even hinder your ability to pay your own bills.

Regaining consistency and predictability is the main reason why many businesses have turned to debt factoring as a cash flow solution

What Is Debt Factoring?

Debt factoring serves as a reliable way to get paid for your work more quickly. Our services put cash in your pocket by fronting most of the money owed to you on the bill. 

Debt factoring works in this fashion. Upon approval, we pay anywhere between 80 and 95 percent of the debt owed by the customer or client. We then collect the debt from them. When we receive full payment, we turn over the rest of the bill to you, minus our fees.

Some businesses use debt factoring on a case-by-case basis, while others engage us to collect all of their outstanding invoices.

How Can It Work For Your Business’s Cash Flow Issues?

Cash flow is the biggest headache for many businesses biggest headache. Inconsistent cash flow prevents a business from reaching its potential in the short or long term. Our services rectify this problem and help you achieve a predictable income.

Your business benefits immediately. Choosing debt factoring puts cash into your pocket to meet obligations, expand your business, or explore opportunities. 

It also adds the important element of predictability. When cash flow grows predictable, you can more easily and effectively plan ahead. This provides considerable peace of mind to business ownership, which is often fraught with unpredictable problems.

Also remember, the money provided by debt factoring is not a loan. No interest rates apply. It is the hard earned money that you made performing the job. Only the client or customer owes anything to us.

What Are Some Other Benefits of Debt Factoring?

Many of our clients have switched over to using debt factoring for most of, if not all of, their outstanding bills. Keeping on top of accounts receivable requires the attention of staff and the deployment of resources. When businesses have few of both, they often contract out essential functions to experienced and trusted professionals.

Relying on our services to collect on invoices prevents you from having to hire dedicated staff for the job. Your employees can concentrate on core functions, especially in making your business as productive and as responsive to the market as possible

Reach Out Today

Debt factoring may seem unfamiliar to many, so we welcome questions. Our staff can answer them thoroughly to ensure complete understanding of how it works. 

BP Financing works with clients with businesses of all sizes, working in a wide variety of fields. Our clients trust our effective services and transparent approach. 

Let us help you to restore cash flow sanity and concentrate on what your business does best.