Accounts Receivable Factoring For Tech Firms
There’s much uncertainty at play when running a tech start-up.
The tech industry is a rapidly evolving and highly competitive field where businesses are made and broken on their ability to access their cash flow.
It’s difficult for new tech companies to secure a decent loan with favorable interest rates from banks that are unwilling to take on the risk without charging loan applicants unreasonable amounts.
However, there is a faster way to access your money without going through a bank.
Great Funds Factoring offers accounts receivable factoring services for tech businesses who need a hand getting access to the cash locked away in unpaid invoices.
What is Accounts Receivable Factoring B2B?
Accounts receivable factoring, otherwise known as invoice factoring (or sometimes just factoring), is a financial service that helps businesses get the payment from invoices upfront.
A factoring company purchases your business’s invoices and provides cash immediately or within a few days.
This process is especially useful for businesses just starting out or experiencing cash flow needs.
Instead of being financially dependent on whether or not customers pay their invoices on time, companies unlock the cash potential stored away in unpaid invoices.
Is Invoice Factoring a Loan?
No, accounts receivable factoring isn’t a loan. The factoring company purchases your invoices at a slight discount and gives you that cash upfront.
You pay no interest and don’t owe the factoring company any money back unless one of your invoices doesn’t get paid.
Can IT and Tech Startups Benefit From Invoice Factoring?
Yes, if your tech business is suffering from a funding gap and is having difficulty getting its invoices paid on time, an invoice factoring company will help to unlock that capital and get you the money you need to operate effectively.
Instead of turning to bank loans and entering a large amount of costly debt, which also requires approval time and amounts to a significant headache, a factoring company pays you for your invoices upfront.
When your tech or IT business doesn’t have to wait to get paid, it can tackle its competition head-on and be proactive leaders in its industry.
Additionally, factoring services will help collect on the invoice payments, freeing up your IT company’s valuable time and energy.
Accounts receivable factoring is an excellent choice for B2B tech and IT businesses that need access to capital fast to stay proactive in a rapidly changing market.
How Great Funds Factoring Helps Tech Companies Get Paid Upfront
Invoice factoring can help your tech start-up access the cash locked away in your unpaid invoices. Read on to learn more about our process.
Invoice Factoring Process
At Great Funds Factoring, we understand that there are many financial challenges that even the most successful businesses can go through and the stress that it can cause.
We believe that good communication is key to developing a strong working relationship with our clients and will strive to be personally available to answer questions about receivable factoring.
During the discovery process, we aim to get a better understanding of your business needs, gain your trust, and determine if open account receivable factoring is a fit for you.
After you submit your credit application, Great Funds Factoring, LLC will review your credit application along with other documents required such as bank statements, master customer list, and financial statements.
When the due diligence is completed, Great Funds Factoring works on the approval process. Usually, the entire process both underwriting and approval review takes one to two business days. Once approved, we send you the proposal and all documents needed to set up your account.
As you send invoices to your customers, we verify them and advance your funds immediately to your account, while holding a small amount in reserve until your customer pays their invoice.
Recourse vs. Non-Recourse Factoring
We offer recourse invoice factoring at Great Funds Factoring. This is a more cost-effective option for IT and tech businesses than non-recourse factoring.
With non-recourse invoice factoring, the factoring company assumes all the risk when a customer doesn’t pay its invoice.
Because of the added risk, factoring companies that use non-recourse factoring have a stricter vetting process and may cost much more than recourse factoring.
With our factoring service, we work with our clients to manage and collect payments on accounts receivable.
However, if the debtor does not pay us after an agreed-upon period of time and all efforts have been made to collect, the client owes us back for the unpaid invoice.
Types of Tech Businesses Great Funds Factoring Helps
Any tech or IT business that needs access to the money locked away in their accounts receivable can benefit from using a factoring company. When you need extra cash because you are expanding operations or having cash flow problems, Great Funds Factoring is your B2B solution for immediate cash.
Here are some tech businesses that benefit from using a factoring service.
Let us help move your business forward
Great Funds Factoring LLC
Contact Great Funds Factoring and Get Paid Fast
Great Funds Factoring helps your business unlock its capital fast, efficiently, and securely. You can’t afford to be a second behind in the tech industry. Great Funds Factoring helps get your business ahead.
Call Great Funds Factoring at 910-My-Money, (910-696-6639) or use our online contact portal.
If you are ready to get started, fill out our online credit application and unlock the power of your customers’ unpaid invoices today.