As the owner of a small staffing firm, you’re obsessed with providing the best service possible for both job seekers and your corporate customers. That’s a lot to keep track of. As a result, it’s easy to forget the business part of your small business. Invoice factoring can help. This funding option provides the cash you need to drive growth and maintain stability while you focus on building your startup.
Not familiar with invoice factoring? With this guide, you’ll learn how you can use this funding alternative to help you take your business to the next level.
Choosing the Best Financing Option for You
You’ve almost certainly heard the expression “you need to spend money to make money.” Well, where does that original cash come from? That’s one of the crucial decisions you’ll need to make as a small business owner: where to get the funds you need to build your organization.
As you develop your staffing startup, you have choices when it comes to financing. Broadly speaking your funding options fall into the following categories:
- Equity Investors
- Lines of Credit
- Credit Cards
- Invoice Factoring
The last item on that list is often ignored by small business owners. Often, the founders of new startups have familiarity with various borrowing options, as well as the process for raising money through investors. However, many miss out on the value provided by invoice factoring.
What Is Invoice Factoring?
You have clients who owe you money. However, you’ve had trouble collecting. The lack of these expected funds has led to an unexpected cash flow shortfall. While you wait for the funds you’re owed, expenses mount and deadlines loom.
Sound familiar? Well, invoice factoring can untangle this common business dilemma.
Under this financing option, you receive cash for your unpaid invoices. Essentially, a funding company gives you credit for the money you’re owed anyway.
You pay a fee for the service. But you’re able to get your cash sooner, without the risk of unpaid invoices.
Benefits of Invoice Factoring
Now you know what factoring provides. But how does it stack up to your other funding options? Here are a few benefits you can expect from turning to this option:
Compared to many funding options, invoice factoring offers a low-cost solution. This is especially true for many short-term options, like credit cards.
You might be tempted to turn to equity investors to avoid adding debt or other obligations. However, now you have partners in your business. Invoice factoring gives you the cash you need while letting you keep close control of your operations.
Long-term loans can become a burden. They also make it hard to react to sudden changes in your circumstances. Loans take significant time and effort to obtain and are hard to unwind once you’ve agreed to them.
Invoice factoring doesn’t have these drawbacks. You’ll have access to cash when you need it while remaining nimble.
Collections represents a risk. You never know when your tardy clients will eventually pay. Invoice factoring helps you eliminate this uncertainty.
Take the Next Step Today!
Ready to get started with invoice factoring? Frontline Funding can provide the expertise you need to maximize the resources for your staffing firm.
Contact Frontline Funding today to get started.