Why Do Companies Use Factoring Services?

Any business that invoices other businesses or government entities for delivered goods and rendered services can benefit from factoring.

Many business owners find these services beneficial because they:

• Are experiencing rapid growth and need to purchase materials, pay vendors and cover operating expenses
• Want to obtain immediate cash for any business use without creating a debt — no principal or interest to repay
• Want to expand their line of business or take on larger accounts
• Are labor-intensive industries and need to meet payroll
• Are start-ups with no financial track record
• Have seasonal cash flow crunches
• Need short-term cash to use as a bridge loan
• Need to improve the business’ credit rating
• Need to make timely tax payments
• Want to benefit from trade discounts
• Have State or Federal tax liens