Factoring, or accounts receivable financing, is a means for businesses to get fast cash when they need it to cover expenses like payroll, investments, and more. In the simplest of terms, an accounts receivable factoring company like Camel Financial takes over a company’s invoicing process; the amount of money you receive is based on your existing invoices. One of the best parts of accounts receivable factoring is the company is responsible for tracking down payments.

However, if you’re not certain whether accounts receivable factoring is right for your business, we’ve collected some information here to make the decision easier.

What Kind of Company Makes a Good Candidate?

If you’re a small business that has trouble getting bank loans due to a lack of collateral, accounts receivable financing will certainly benefit you. Additionally, if you’re frequently struggling with late client payments or invoicing issues, handing the reins to someone else is often beneficial. Businesses that want to grow will also benefit from invoice factoring, as they’ll have the necessary cash in hand to expand how they see fit.

Will I Benefit from an Accounts Receivable Factoring Company?

There are a number of reasons a company might benefit from accounts receivable factoring, such as:

It Increases Your Efficiency: These days, having clients waiting around to pay their invoices or having issues when they try to pay will often cost you. But it isn’t necessary with accounts receivable financing. A third-party company like Camel Financial will help you streamline the invoicing and payment process. You’ll have cash in hand to use as you see fit.
There’s No Need for Collateral: With invoice factoring, your outstanding invoices are your collateral. There’s no need to put down money like when receiving a loan from a traditional banking institution.
Streamlining Your Business Process: Running a collection and invoicing department in-house can certainly be a strain on resources. However, working with an accounts receivable factoring firm will help you focus your resources where they’re needed the most.
You Don’t Have to Sell Equity: Other financing options to help keep your business afloat will often require you to sell equity from your business, sharing ownership in part with your loan providers. With accounts receivable financing, you’ll be able to maintain total control of your company.

Contact us today for more about accounts receivable factoring

If you’re in need of an accounts receivable factoring company or a quick cash loan, contact Camel Financial online today or call (949) 722-7717.