The holiday season is here, bringing days of celebration and fun. But, for many small business owners in the United States, it also brings some anxiety. How will they keep up with increased holiday orders, pay for inventory, and keep their businesses afloat?
According to the Small Business Administration, there are more than 30 million small businesses in the US as of 2018. As a small business owner, you may struggle with a range of issues at the holidays. Here are three ways why invoice factoring is a great financing option for small businesses and can help you have the holiday season you deserve.
#1: Factoring companies for small businesses provide cash flow
At Triumph Business Capital, one of our top concerns at the holidays is giving our clients access to the cash flow they need. Your sales may double or even triple at this time of year. To meet the increased demand for your products, you need cash on hand to pay for raw materials, inventory and maybe even employee overtime.
Because we can advance money against your unpaid invoices, invoice factoring can keep the money flowing so you can keep up with those holiday orders. You won’t need to wait weeks (or even longer) to be paid. Each sale you make becomes part of a steady stream of cash that you can use.
#2: Checking Customer Credit
For some small business owners, any order is a good order. But, at the holidays, it’s not uncommon for a big invoice to turn into a huge headache when it proves to be uncollectable when the season ends. And, in some cases, the headache of a collection problem can be warded off by simply checking the customer’s credit before you process their order.
At Triumph Business Capital, our experienced account executives can review a potential customer’s credit for you. Or, you can use our online credit check to check it yourself. If a company has a history of serious delinquency, you can decide not to sell to them – or to sell only on a cash basis to avoid collection issues down the line.
#3: Speeding up Collection of Invoices
Collecting invoices can be a time-consuming and frustrating process for business owners. At the holidays, it can be doubly difficult. It’s hard not to feel like a Grinch when you’re calling to collect money in the middle of the holiday season.
Factoring your invoices gives you access to back office solutions that include professional collection services. At Triumph Business Capital, our professional account executives and their teams will make courteous and timely collection calls on your past due accounts. That way, you can focus on making holiday sales while we handle the rest.
The holiday season should be a time when you can focus on making sales and reaping the rewards of the hard work you’ve done all year. Factoring your invoices allows you to do that with the cash flow and additional services you need.
Ready to find out how Triumph Business Capital can help your small business during the holiday season? Click here to learn more!