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How Factoring Can Get Your Business Through the Rough Patches


September 23, 2019

Every business has rough patches — times when money is tight, and you’re wondering how you’ll make ends meet.

As of 2019, more than half of all start-up businesses will fail within four years. A lack of money is the no. 2 reason that businesses fail. A lack of money can also lead to other issues, including:

  • Not being able to plan for the future
  • No money for ads or marketing to sell your services
  • Underestimating the competition

The good news is that invoice factoring can help provide small businesses with the working capital they need to stay afloat. Here’s what you need to know:

Invoice Factoring Provides Predictable Cash Flow

Unpredictable cash flow has hindered many small businesses. Without steady income, it can be difficult to maintain daily business operations, like:

  • Meeting payroll
  • Paying routine overhead expenses (rent, for example)
  • Buying raw materials
  • Hiring new employees
  • Updating software and hardware

Your company needs money to survive. When you choose invoice factoring, you won’t need to wait for customers to pay you. You’ll get cash when you issue your invoices, and that will relieve you of the burden of unpredictable cash flow.

Invoice Factoring Frees up Your Time

As a business owner, you know that when times are tough, you need to focus your energy where it’s most needed. Invoice factoring can help you do that.

Factoring companies provides business owners with the steady cash flow and back-office services they need, including:

  • Credit checks and approvals
  • Invoice collections
  • Payment processing
  • Financial reporting
  • Client portals for account management

With these essential tasks off your plate, you’ll be able to focus on providing top-notch customer service, attracting new business and (**hopefully**) growing your company.

Invoice Factoring is Available Even if Your Business Credit Isn’t Great

What if you’ve been struggling for a while and your business credit score has taken a hit? The good news is that invoice factoring is an option for you.

Invoice factoring companies have less stringent credit requirements than banks and credit unions. You don’t need to have a perfect business credit score (or personal credit score). Factoring companies purchase your outstanding invoices and collect from your clients. That means your clients’ credit score is more important than yours.

So even if your business has hit a rough patch, we can help you by providing the cash flow you need to get back on track.

Invoice Factoring Can Improve the Financial Health of Your Business

Most factoring companies provide credit and collection services as part of the agreements they have with their clients. That’s because we understand that business owners are focused on providing their products or services to their clients — not necessarily on chasing months’ old invoices.

  • Stop worrying about slow-paying customers
  • Work with clients with longer payment terms
  • Improve your AR
  • Make financial plans and investments based on expected income

Overall, these things combine to improve the overall financial health of your business, making it easier for you to achieve your growth goals.

The Rough Times Don’t Need to Bring You Down

Keeping a business afloat during a rough patch can be difficult. Partnering with a factoring company like Triumph, formerly known as Triumph Business Capital can remove the stress.

Click here to learn how we can help your business thrive.