The economy is getting back on its feet, which means businesses across all industries need fast access to revenue and working capital to keep the lights on, pay employees, and cover the cost of client orders. Factoring can help businesses to quickly recover from the economic sluggishness during the pandemic, and provide a solution for long-term growth and success.
The Short-Term Benefits of Factoring
Factoring is used to eliminate the waiting time between the point at which an invoice is generated and the point at which a client pays for goods or services. Typically, invoices have payment schedules of 30 days or longer, which means businesses are left waiting until the client pays the balance before they see revenue. This can create a very strained financial situation for businesses when they are trying to get up and running after an economic slump. Factoring turns those invoices to cash quickly without placing debt on the books so businesses can maintain a constant cash flow without gaps caused by long payment schedules. Factoring from Single Point Capital makes those funds available within a single day.
Factoring isn’t just used by businesses to reach short-term goals. Heading into the pandemic, businesses that used factoring fared better because they did not have to worry about unpaid receivables as clients were starting to suspend operations. Cash flow remained healthy, and businesses did not have to chase after every penny or perform collections because all of their invoices were factored. Factoring allows businesses to automate accounts receivable to optimize cash flow. Additionally, factoring also gives businesses the ability to stockpile capital for future growth plans. When cash flow is optimized and there are no gaps, businesses can cover regular expenses without worry and build up reserves with the remaining revenue.
Factoring Services from Single Point Capital
Single Point Capital is a leader in factoring services nationwide with fast turnaround times so you can access funds within a single day. From short-term solutions like smoothing out uneven revenue cycles to long-term strategies like optimizing cash flow to build up growth capital, our factoring service have you covered. Contact Single Point Capital today to get started.