- HoneyHat

Industry that Uses Invoice Factoring

Factoring can be a cost-effective and quick way to increase cash flow for your business to pay bills, payroll, or expand. Here are six industries that factoring has become a popular funding option. We also provide information on how factoring can help them.

What is Invoice Factoring in Oil and Gas Industry?

The Permian Basin’s explosive growth has presented both huge opportunities and great challenges to oil companies.both require cash. Cash flow is essential for paying bills on time, investing into new equipment, hiring top talent, and growing a business within a boom industry. These businesses can access working capital quickly to allow them to expand and take on more orders. Invoice factoring is a popular solution for oil and natural gas companies who need to pay day-to-day expenses, manage slow-paying clients, and have the cash available for future growth.

What is Invoice Factoring in the Transportation Industry?

Before any freight is actually delivered, the transportation industry or trucking companies must pay a lot of expenses. These include fuel costs, drivers’ salaries, tolls, insurance, and paying drivers. The business may need additional cash from time to time to buy new equipment, pay suppliers, and maintain its vehicles. Invoice factoring allows trucking companies to quickly raise the capital they need to transport their next load, rather than holding on to freight bills. Factoring is used by many small- to medium-sized trucking businesses to increase their fleet, hire quality drivers, and grow their workforce.

What is Invoice Factoring used by the Staffing Industry?

Staffing agencies must pay their staff, which is their largest resource, on a regular basis. To be successful, these agencies need to recruit top talent. Staffing agencies can have long delays between invoicing customers and receiving payment. This can make it difficult for them to pay their employees consistently. Factoring invoices frees up cash for businesses that have unpaid invoices. It also eliminates the burden of paying payroll. Staffing agencies can factor their receivables to meet their own needs while still providing exceptional service to their clients.

What is Invoice Factoring used by the Manufacturing Industry?

Most manufacturers need to be able to purchase large quantities of material and maintain a large workforce in order to run smoothly. Manufacturers are subject to unexpected expenses, which can impact productivity. After supplies have been purchased, major equipment repairs or replacements can cause delays in the completion of orders. These companies can easily purchase raw materials, cover payroll, and cover equipment costs by factoring unpaid bills.

What is Invoice Factoring and how can government contractors use it?

Contracts at all levels of government, including school districts, cities, counties, states, and federal, often lead to long payment cycles. Invoices take time to pass through all the approvals and disbursements. A government contractor may not receive funds until the entity has paid with a credit card for several months. Factoring invoices allows government contractors to get the cash they need upfront. This includes paying suppliers, employees, and other parties involved in projects.

What is Invoice Factoring used by the Wholesale and Distribution Industry?

Lack of capital is one of the greatest obstacles for wholesalers and distributors. Even the most meticulous financial planners may find themselves in a cash crunch due to high overhead costs such as advertising, payroll, utilities bills and legal fees. When demand is low and supply is high, wholesale and distribution opportunities often arise. These companies must have sufficient cash to take advantage of low prices. Factoring invoices can help you have working capital for slow periods and increase your cash flow to pursue new opportunities.

These are just some of the industries that use invoice factoring to keep their cash flowing and streamline their operations. Do you need fast business financing? Factoring invoices can help you cover your daily expenses and take advantage of opportunities to grow.

Invoice Factoring Services for Security Business Capital

Security Business Capital is a team of dedicated individuals who have years of experience in providing flexible cash flow solutions to help businesses grow. Security Business Capital can provide invoice factoring services that will allow you to have cash in hand for a variety of business types, including oil and gas services, transportation, manufacturing, distribution, and transport.

Security Business Capital is a quick, easy and hassle-free way for your company to find other financing options to help pay expenses or grow.

Contact us today to receive a complimentary quote and consultation about our invoice factoring services and how they can help you grow your business.

The post 6 Industries That Greatly Benefit From Invoice Factoring appeared originally on Security Business Capital.