If you are a small to mid-sized company, a startup, or an entrepreneur with current clients and outstanding invoices, using business factoring can be a smart choice for your business. For any St. Petersburg business struggling to make payroll, purchases, or to take advantage of the opportunity to expand your business, factoring makes good business sense.
The practice of business factoring is very common across a wide range of industries. It is used by staffing companies, service businesses, manufacturing industries and for companies operating in the information technology field. These businesses all have the same problem, they offer their customers 30, 60 or 90-day terms, meaning they do the work and they have to wait to be paid.
The Factoring Difference
A company offering business factoring recognizes the value of those outstanding invoices, and they advance up to 90% of the value. As the business owner, you can determine the accounts receivables you wish to sell, or you can choose a factor to handle all your outstanding invoices.
The factor then assumes the full responsibility of collecting on the invoices. Once your customer pays you in full, the factor deducts the pre-set fees and forwards any residual amount to the account you have designated.
The Process
Businesses and companies in St. Petersburg choosing to use business factoring will find the process is much less stressful and much more streamlined than obtaining a traditional loan.
The application is free, and can be completed in just a few minutes online. Approvals can be provided within 24 hours of the application, and then the funds will be transferred to the designated business account within days.
Since this is not a loan, there is no need for a personal guarantee to obtain business factoring. There is also no credit check for the business, rather the factor will check the credit of your customers, and this due diligence is done as part of the service, helping to further save expenses.
With top business factoring services, there is no long-term contract to continue to use the service, and there is never a penalty of a fee for termination of the service. Finally, these services also help any St. Petersburg business by managing collections and back office support, which will free up your staff to focus on your new and growing business opportunities.
