Factoring Financing Doesn’t JUST Accelerate Your Cash Flow
Factoring Financing services involve selling your unpaid invoices to a factoring company in return for a percentage of their value. There are plenty of reasons why factoring your invoices with the help of a recourse factor makes sense. The fact that you can put cash back into your company immediately through accounts receivable financing, also known as accounts receivable factoring, is just one of them. Plus, invoice factoring services are easier to get approved for than a traditional business loan.
How Commercial Factoring Can Fuel Business Growth
Commercial factoring is a dynamic financial solution that converts receivables into immediate cash, empowering businesses to grow without taking on debt. By selling invoices for upfront payment, businesses of all sizes—small businesses, B2B companies, and large enterprises—can maintain steady cash flow and invest in opportunities that drive growth.
Factoring enables businesses to fund payroll, purchase inventory, and address trade financing needs without waiting for customers to settle invoices. This flexibility is especially valuable in industries that operate on extended credit terms, helping businesses remain competitive and seize time-sensitive opportunities. By transforming sales on credit terms into working capital, factoring eliminates delays and accelerates access to funds.
Unlike a line of credit or asset-based lending, factoring bases funding decisions on the creditworthiness of debtors, not the business itself. This makes it an accessible option for businesses with limited assets or short credit histories. Factoring companies also offer tailored solutions, such as non-notification and notification factoring, to meet specific business needs. The streamlined approval process ensures quick funding, allowing companies to act decisively on strategic initiatives like marketing, hiring, or equipment purchases.
Additionally, the factoring process reduces financial risk by outsourcing collections and ensuring predictable cash flow. Businesses pay a factoring fee based on invoice value, receiving consistent working capital as invoices are paid. With its adaptability and reliability, commercial factoring supports businesses in growing, adapting, and thriving in competitive markets.
Accelerated Cash Flow
Needing a cash advance for your business is the most apparent reason for business owners to sell their invoices. With Viva Capital, we are simply advancing on the money you’ve already earned, eliminating the need for bank loans, loss of assets, etc. Turn 30, 60, or even 90-day waiting periods into quick working capital within 24 to 48 hours.
At Viva Capital, we have a FAST approval process so that you can turn your outstanding invoices into cash immediately with our invoice factoring solutions.
Outsourced Accounts Receivable
A less obvious but equally important reason to sell your invoices is that you’ll have no need for an internal collections department and facilities. Unlike invoice discounting (sometimes referred to as advance factoring), your business will not need to conduct the collections.
Factoring companies collect invoice payments from your customers for you. Turn your collections process over to Viva Capital and let our collections experts save your company time and money. Learn more about our tailored factoring for staffing companies to see how it can enhance cash flow and operational efficiency.
High Advance Rate
As a growing business, you are establishing your track record. Unfortunately, that means a bank might consider your company to be a high credit risk.
That’s not the case with Viva Capital. We base our decision on your client’s credit, not yours. The established clients you are working with may have a longer track record than you. As a result, you can expect advance rates as high as 98%. Additionally, businesses can explore alternative financing methods like asset-based lending to secure working capital while leveraging their company’s assets.
When it comes down to it, factoring loans just make sense. With invoice factoring services, not only will you accelerate your cash flow, increase liquidity, and outsource your collections to an experienced team of experts, but you’ll also save money in the long term. Factoring has an outstanding business benefit as both a cash flow solution and an outsourcing opportunity. You need to take advantage of every resource you have. Viva Capital can help you with your invoice factoring financing.
