Whether you’re dealing with a cash-flow shortage or slow-paying customers, you may be considering using factoring. Entrepreneur Magazine defines factoring as “A financing method in which a business owner sells accounts receivable at a discount to a third-party funding source to raise capital.” In layman’s terms, factoring companies – like RMP Capital – buy invoices from businesses like yours. This frees up the cash you need to run your business.
What are some of the benefits of factoring? We outline three below:
Get money fast
With factoring, you don’t have to wait the typical 30-60 days for customer payments. Once you’ve sent an invoice to a factoring firm, you can expect money in your hands fast – usually within 48 hours!
Predictable cash flow
No more allowing your customers to dictate your cash flow. With factoring, you’re able to self-manage cash flow, ensuring a constant source of working capital. You can use this money to fund new product lines, services and overall business growth.
Tired of chasing down customers? Our dedicated professionals will collect payments for you, giving you more time to focus on driving your business forward. Moreover, some of your customers may be inclined to pay their debts more punctually.
RMP Capital prides itself on providing creative funding services. Our experts handle speeding up your cash flow so that you can effectively run and grow your business! To learn more about who we are and what we do, visit our website.