7/3/2023 0 Comments Invoice factoring californiaWhen you work with a non-recourse Factoring company like ACS Factors, you limit the potential for bad debt because the Factor absorbs any unpaid invoices, shielding your company from all the risks that come with them. One way of protecting yourself is by using invoice factoring, more specifically non-recourse Factoring. ![]() Needless to say, all business owners should try to steer clear of bad debt. In other words, bad debt is receivables that your customers won’t be able to pay for whatever reason. ![]() Avoid Bad Debtīad debt occurs when the credit previously extended to a client becomes uncollectible. So not only does factoring improve your cash flow, but it also takes the collection process off your plate so that you and your team can focus on reaching your goals. Factoring allows you to free up all that time and devote more resources to your core business. It’s no secret that the collection process can be extremely time-consuming, with endless calls often needed to deal with slow-paying clients. Save ResourcesĪs mentioned earlier, when you Factor your invoices, the Factoring company takes charge of collecting the invoices from your clients. This is without a doubt a very compelling reason to use invoice factoring. This way you stay cash flow positive at all times to solve immediate needs or pursue new opportunities. What if you could turn all those unpaid invoices into cash whenever you want? That would be a game-changer for sure, and that’s precisely what Invoice Factoring allows you to do.įactoring your invoices means selling them to a Factoring company (also called Factor) who pays you immediately and then collects the invoices from your clients in exchange for a small fee. ![]() You know what it’s like: extending credit terms to your customers usually means waiting 30 to 90 days to get paid. With financing alternatives, it all comes down to a simple question: Why use them? If you are considering Invoice Factoring for your business, here are four solid reasons why you should take the plunge.
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