Many small businesses are plagued by erratic incoming revenue, and that can cause cash flow to be very spotty and problematic. One of the best ways to solve this problem is with factoring, which puts cash in your hands immediately, in exchange for selling off some or all of your monthly invoices. Here are some of the industries which most frequently make use of factoring to achieve positive cash flow, and keep expenses paid on time.
It happens quite frequently that a trucking business is prevented from taking more loads than it could, simply because cash flow prevents keeping the entire fleet on the road and working. Regardless of the type of trucking your company might do, you’ll be able to keep your fleet on the road consistently when you engage in factoring that will provide more timely income.
There are all kinds of companies in the business service category, and all of them depend on accounts receivable in order to conduct normal business operations. When invoice payments are unpredictable and slow in arriving, it can be a major problem for a service provider type of business. It can also stand in the way of any business expansion or growth, simply because funds are not consistently available to manage normal operations and growth opportunities.
Many small businesses that have a working relationship with the government or some of its many agencies have difficulty obtaining the funds and the necessary bonding for carrying out government projects. Factoring can be a valuable way of maintaining positive cash flow which will allow small businesses to compete in the marketplace, and to maintain their business with governmental agencies.
In addition to those industries described above, there are numerous other types of businesses that also are ideally situated to take advantage of factoring. Some of these include agriculture, tech companies, engineering companies, construction, import/export businesses, distribution, food businesses, and a great many others besides. In fact, almost any business that generates a high volume of invoices each month could benefit from factoring, to create more positive cash flow.
Would Factoring Help Your Small Business?
Factoring can put cash in your hands immediately, to be used for any business purpose you see fit. If you’re thinking of factoring, contact us at Ambition Funding Solutions, so we can discuss how it can help your business, and get you started on the program.