When you’re running a small- or medium-sized business, your cash flow is important and sometimes it doesn’t feel like the flow goes at the same pace as the need. If your business has never used a factoring service, BP Financing will make sure you know what it is as well as the benefits for your business.
The easiest way to think about factoring is to consider it an advance on your outstanding invoices. However, the payment is given at a discounted rate from the full amount. Our team will pay out as much as 95 percent of the amount due on your invoices. That being said, factoring can be beneficial to your business, especially during times of uncertainty like the current pandemic. Our team is here to explain the benefits of factoring while preparing for the next fiscal year.
When you need cash, it can feel like payment dates are weeks or months away, but in reality, they’re probably not more than a few days out. You can get money right away when you factor, especially with BP Financing. Simply provide our team with your invoices that are due and we’re factor the cash for you. We know that you need money fast, so our team can get the funds to you on the same day.
While you can usually get business loans to cover expenses while waiting for invoices to payout, interest rates can be a killer. Meanwhile, your loans are sitting and accumulating interest as you wait for your clients to pay on those invoices. Factoring gives you your money interest-free. This allows you to get the cash that you need right away without the interest that accumulates even over a short period of time. With a flat fee as low as five percent of your total amount, you can feel confident that the money you borrowed won’t continually grow as you wait for the money to come in.
No new debts
In addition to the interest that rapidly builds, business loans can snowball your debt in the wrong direction. One of the benefits of factoring is that it doesn’t add to your debt. We know the amount that you have invoiced out to clients, so that money will be coming in to pay off the amount factored.
Even if you’re not in dire need of funds right away, factoring can be a great way to invest when an opportunity arises. By investing funds that have been paid via factoring, you can get a return that’s higher than the amount invoiced. We’ll explain. Let’s say you have an opportunity to invest funds that provides a 10-percent return but not enough cash on-hand to complete the transaction. At BP Financing, we offer advances that are as high as 95 percent of the invoice value. By investing the invoice value immediately, you get a return of five percent of the initial investment rather than miss an opportunity and return zero percent.
The team at BP Financing knows that if you’re considering the benefits of factoring, you likely need cash right away. This is why we provide a prompt response and can provide your payment the same day you send your invoices to us. We make it a point to get our clients taken care of as quickly as possible.
Contact BP Financing to get started
If you’re considering a factoring service as part of your financial planning for the next fiscal year, BP Financing is here to help. We know that your small- or medium-sized business relies on constant cash flow to keep business running so we’re here to help. Contact our team today and we’ll help you weigh the benefits of factoring for your business.