Business Factoring Success Stories: How Real Brands Benefit

You’ve probably heard that invoice factoring can improve your cash flow by unlocking capital tied up in your invoices. The idea sounds good on paper, but how does this translate to real-life experiences? Give us a few moments and we’ll walk you through some business factoring success stories, the different ways businesses leverage factoring, and the results they’re achieving through it.

Improving Cash Flow with Factoring

Managing cash flow effectively is critical to business survival. Yet, two out of three small businesses struggle with cash flow issues, and nearly one-third say it prevents them from covering key expenses, like paying vendors, making loan payments, and even covering payroll, Intuit surveys show. These challenges can occur even if your business is profitable because they don’t relate to whether your business makes money, they’re tied to whether that incoming revenue aligns with the outlay of expenses.

Many things can disrupt this delicate balance. For instance, if you offer longer payment terms to your clients, your cash outflows will naturally come due before your cash inflows arrive. Businesses also routinely struggle when they receive a single large order but need the cash tied up in an unpaid invoice to fulfill it. Similarly, companies experiencing rapid growth become strained, as expenses scale before cash inflows do.

How Factoring Helps Address Cash Flow Issues

Factoring addresses all these cash flow challenges by providing instant payment on outstanding receivables. Rather than waiting weeks or months to get paid, your business can sell its unpaid invoices to a factor at a slight discount and get most of their value upfront.

Many businesses are overcoming financial challenges with factoring this way, but because it’s such a versatile tool, the approach used and how they benefit differs. For instance, META Ready Mix & Hauling was performing well, but they often extended net 45 payment terms to customers. With major expenses such as fuel, maintenance, and payroll needing to be covered well before payments arrived, cash flow was tight. That made it difficult to accept large orders sometimes and understandably made them uneasy about investing in growth. Through spot factoring, the company accelerates payment on invoices selectively to close cash flow gaps as they emerge.

Issues like this are common in transportation, and they can compound as a fleet grows. That’s what happened with R. Ramirez Express. The owner found himself racing to Western Union stations to ensure his drivers could refuel or get repairs. He paired Viva’s transportation factoring services with fuel cards. These transformative factoring benefits allow him to focus on running his business instead of making emergency wires, and the company saves money on fuel and repairs, too.

Building Business Resilience Through Factoring

No matter how strong a business is during the best times, challenges are sure to emerge that can leave it reeling if unprepared. For instance, the average small business needs a buffer that can cover three to six months of expenses. Yet, the average one has just 27 days of cash reserves, according to Business News Daily.

We saw the impact of this during the early days of the pandemic. Roughly 700,000 businesses closed during the second quarter of 2020 alone, the Federal Reserve reports. This was obviously a rare and extreme example, but a plethora of issues, ranging from the emergence of new competitors to cyclical changes and even general supply chain disruptions, can drain a business quickly.

How Factoring Helps Build Business Resilience 

A wide variety of factors influence a company’s resilience, such as financial stability, operational agility, and risk management strategies. Being able to pivot and having the cash on hand to do so quickly is key. Many invoice factoring stories surround this idea of helping a business survive an unexpected hardship, and, thanks to the fast payouts, it’s an ideal solution in these situations.

However, businesses that have experienced these types of hardships often work very hard to build up their cash reserves to ensure they’re never adversely impacted again. Being prepared is especially important in industries like construction, which already copes with seasonality and can be especially sensitive to economic shifts as well.

This was the case for Diversified Interiors. With decades of experience in the industry and a strong reputation, the company was not facing any abnormal risks or hardships. Yet, this experience also taught them that lean times can emerge without any warning. Paired with extended payment terms of up to 90 days, it’s easy to see why any construction firm would be wary of stretching themselves too thin. The company had access to lines of credit for emergencies, but it also found that the long payment cycles were making it difficult to accept new projects and pay subcontractors in a timely manner. They turned to Viva’s Quick Pay Program, which keeps general contractors in control of their advances, yet allows them an easy way to ensure selected subcontractors receive pay in a timely manner and projects keep moving forward.

Forging Stronger Business Relationships with Factoring

Strong business relationships are the foundation of long-term success. For companies in industries like construction, manufacturing, and contracting, maintaining trust with suppliers, subcontractors, and vendors is crucial. Yet, cash flow delays can strain these partnerships, leading to missed opportunities, stalled projects, and damaged reputations. When businesses struggle to pay their partners on time, those partners may hesitate to take on new work or extend favorable terms in the future.

How Factoring Helps Strengthen Relationships

Factoring helps companies maintain and even strengthen these relationships by ensuring businesses can make consistent, reliable payments. When cash flow is predictable, businesses can pay subcontractors and suppliers on time, negotiate better terms, and improve their reputation as a dependable partner.

This was exactly the case for Medlock Commercial Contractors. With multiple large projects underway, the company needed to ensure subcontractors were paid on time to keep work moving forward. They leveraged Viva’s Construction Quick Pay Program, allowing them to accelerate payments for subcontractors while maintaining control over their own cash flow. By doing so, they kept projects on track and strengthened relationships with key partners, making it easier to collaborate on future work.

Similarly, Banes General Contractors depended on subcontractors completing work on schedule, but long payment cycles created potential delays. Factoring helped them ensure subcontractors were paid promptly, allowing projects to progress smoothly and fostering stronger, more loyal partnerships. Over time, this reliability gave them an edge in securing top-tier subcontractors who preferred working with companies that prioritized timely payments.

Procuring Equipment Through Factoring

From expanding fleets to upgrading machinery and replacing aging assets, having the right tools in place can improve efficiency, increase revenue, and open new growth opportunities. However, acquiring equipment often comes with significant upfront costs, and many businesses struggle to balance these investments with day-to-day operational expenses.

How Factoring Helps with Procuring Equipment

Factoring provides a flexible, debt-free way to fund equipment purchases by converting unpaid invoices into immediate working capital. Instead of waiting for customers to pay, businesses can access the cash they need to secure essential equipment without taking on loans or disrupting cash flow.

This was exactly the case for Cold Way Transportation. As their business grew, so did their need for reliable refrigerated trucks to meet client demand. The company faced a challenge: acquiring new equipment required a significant financial outlay, yet their cash flow was tied up in invoices with extended payment terms. By factoring their receivables, Cold Way was able to accelerate cash flow and reinvest in fleet expansion without relying on credit lines or external financing.

With steady access to working capital, the company positioned itself for long-term growth, better service reliability, and greater operational efficiency. Factoring didn’t just help them acquire new equipment, it ensured they could scale sustainably, meet customer expectations, and take on new business opportunities with confidence.

It’s worth noting that companies sometimes require more capital for equipment than their invoices can provide. When you partner with a factoring company like Viva, you unlock access to a wealth of additional financial services, such as dedicated equipment financing, asset-based lending, and short-term financing, to help ensure the right funding solution for any given need is always within reach.

Fueling Business Growth Through Factoring

Most businesses aspire to grow, but scaling too quickly without the right financial foundation can create major challenges. Companies expanding their operations often face a cash flow squeeze as new opportunities require upfront investment in materials, equipment, and staffing, yet revenue from those opportunities may not arrive for weeks or months. When cash flow doesn’t align with growth, businesses may struggle to keep up with demand, miss expansion opportunities, or even risk financial instability.

How Factoring Serves as a Growth Strategy

Factoring fuels growth by ensuring businesses have the working capital needed to scale without delays or financial strain. Instead of waiting on customer payments, businesses can access funds immediately, invest in expansion, and confidently take on new projects. Many businesses have leveraged factoring to turn growth challenges into success stories. Let’s take a look at a few.

For industrial equipment supplier DMI Industries Supplies, demand for their products increased, but long customer payment terms made it difficult to scale at the needed pace. Without sufficient cash flow, fulfilling large orders and expanding their operations became a challenge. By leveraging Viva’s manufacturing factoring services, they were able to stabilize their cash flow and reinvest in growth, allowing them to accept larger contracts and strengthen their position in the industry. Now, global expansion is a real possibility for the brand.

Similarly, Sun City Pallets needed capital to expand its production capabilities. While their business was thriving, their cash flow was tied up in receivables, slowing down their ability to purchase raw materials and hire additional workers. Factoring provided the financial flexibility to increase output, improve efficiency, and keep up with growing demand. Over two years, the company increased revenue by 400 percent.

The challenges of rapid growth are seen in oilfield services, too. For instance, BelCon Logistics managed to secure contracts hauling frac sand for major energy companies. While a seemingly ideal situation due to the lucrative nature of the contracts, Big Oil sets its own terms, which means companies may wait 90 or more days for payment as invoices go through lengthy approval processes. By leveraging oilfield factoring, BelCon was able to focus on closing deals and hiring the right talent rather than chasing invoices, and the company grew 1,000 percent over three and a half years.

While these success stories showcase the benefits of factoring for established businesses, it can also help younger businesses and startups gain solid financial footing and grow, too. This was the case for Top of the Line Healthcare Staffing. After securing their first few clients, the company turned to healthcare factoring to accelerate payment and put that cash into growth initiatives. Their workforce grew from just six professionals to nearly 200 in less than one year, and revenue skyrocketed by roughly 1,000 percent.

Becoming a Partner in Business Finance Transformation by Referring

The growth and cash management success stories we’ve covered highlight the many ways businesses benefit from invoice factoring, yet it’s often overlooked as a funding solution, and even those who are familiar with it can sometimes struggle to find a reliable factoring partner. Working with truckers every day, Harless Logistics saw this firsthand. They helped their clients with permitting issues and load booking, but sometimes, their clients couldn’t even afford the fuel to take on another load because their cash was tied up in unpaid invoices. Harless understood the value of factoring, so they would refer these clients to their factoring partner until, one day, that company vanished without warning. After seeing that Viva had been helping businesses succeed for decades and reading Viva’s factoring testimonials, they were certain they’d found the right long-term factoring partner for their clients. These days, Harless and their clients both benefit from the Viva Capital Referral Partner Program.

How Viva’s Referral Partner Program Helps Businesses and Their Clients

Harless Logistics’ involvement with businesses in an industry that routinely leverages factoring made the company a good fit for the Referral Partner Program. Viva often partners with bookkeepers, accountants, and other professionals in similar situations who work with B2B businesses facing cash flow challenges.

These referral partners simply mention Viva to their contacts when it seems like there’s a fit and forward their information to Viva. We take it from there. Once the referral becomes a client and begins factoring, the Referral Partner earns commission.

This unique setup helps businesses like Harless Logistics serve their customers better, increase their own business, and earn on the side. As you can see from all these success stories in factoring, the referred businesses benefit from fast, reliable funding, too.

Experience the Positive Impacts of Invoice Factoring for Yourself

Factoring’s impact on businesses is clear. Whether you’re in the early stages of growth or well established, if the cash tied up in your unpaid invoices is holding you back, factoring can free it up to help your business stabilize its finances and grow. To learn more or get started, request a complimentary rate quote.