When funds run low, the growth of your business slows. Sometimes your business needs cash to invest in order to produce more profit. Factoring builds your cash flow quickly and gives you the flexibility you need.
What is Factoring?
When a business sells its receivables to a third party for cash, it’s called factoring.
Here’s how the process works: Typically, you provide goods or services to your customer and send them an invoice. There’s a waiting period that begins when your resources are expended to provide the service, and ends when your client pays. You have already incurred expenses to produce the items or provide the services, so you start in the red. Additionally, invoices aren’t always handled promptly, which can further extend the window of time your business is on the hook.
When you choose factoring, you send your original invoice to a factoring company like Drake Finance. The factoring company advances you a large percentage of the invoice value, and you use that cash as working capital. Pay your employees, invest in further growth, and use it for whatever your business needs most.
We Have a Solution to Your Cash Flow Challenges
What Can You Do with the Money?
Once you have the money in hand, you now have the freedom to operate from a growth perspective, versus worrying about unsettled debt. Factoring allows your business to retain the liquid capital needed to buy more raw materials, increase the volume of exports, maintain accurate record-keeping, and keep your business moving forward.
Why Choose Factoring Over Bank Loans?
Factoring has several benefits over bank loans. Here are a few reasons to consider it:
• Bank loans have a limit. The amount you finance from factoring is based on your receivables.
• Bank loans are just that: loans. Factoring creates no debt for your company.
• Bank loans are based on your credit score. Factoring is based on your client’s credibility.
• Bank loans take at least a month to process. Factoring is fast; many companies receive their cash in days.
No Collection Headaches with Export Financing
One of the biggest business headaches occurs when customers don’t pay, especially those who are overseas and more difficult to reach. With Export Financing, Drake Finance handles collection for you.
Why Choose Drake Finance?
If you export, the delay between providing goods and services and receiving payment can be even longer and more complex. Drake Finance offers its International Factoring Program to give US exporters the cash they need to keep growing.
Drake Finance offers business owners up to 95% of their total invoice value. We pay businesses in as little as 24 hours after your goods reach their port of destination. We serve companies nationwide with both domestic and international factoring services, and offer competitive rates for both large and small companies. Request a free quote today.