3 Reasons To Use Invoice Factoring to Get Financing

LendioAs a small business, it is critically important that you have the necessary access to capital to work on a contract. Your customer will be aware if the inability to finish the work is related to a lack of funding.

This is why it is a smart idea to put together a business financing strategy before you close a sale on a new contract.

Related story: How Invoice Factoring Works and Why Business Owners Should Care

Of course small contracting firms experience a little bit of a catch-22 when they think about going to the bank for a loan. They cannot show historical revenue that matches the great expectations around the corner.

Here is where invoice factoring can me a tremendous tool to get from point A up to point C,D and E. There are three main benefits to consider about factoring receivables;

Often misunderstood and more commonly unheard of, invoice factoring can be just the mechanism you need to build a company with additional employees. At the end of the day, after using factoring for a while, you will be able to transition to an more traditional business loan that will mark the ongoing success of your company.

About the author
3 Reasons To Use Invoice Factoring to Get FinancingGary Honig has been active with the factoring industry since the early 1990’s where he began as a business development officer for the existing Creative Capital Associates. In March 1997 he spearheaded a takeover of the company and reformed it as a Maryland corporation.

Honig has been at the helm since and oversees all aspects of running CCA which still provides commercial invoice factoring nationwide. He is a participating member of the International Factoring Association (IFA) which is the long standing factoring industry association. He is routinely called upon as an expert with thorough knowledge of the receivables factoring industry.
He can be reached at [email protected] and on Twitter @garyhonig.

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  1. I am interested to know whether you provide factoring facility in USA or in overseas.

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