While just about any business could benefit from better cash flow and more available money to grow the company, there are a few industries where working with an invoice factoring company is particularly beneficial. For these industries cash flow is critical, and payment on outstanding receivables might take a little bit longer than normal. If your business is in one of these industries, consider whether selling your outstanding invoices to a factoring company might be an option.
Temporary Staffing Agencies
Staffing agencies must pay their employees immediately, but generally don’t receive payment from the firms they staffed for several weeks. Since employees won’t want to wait for a paycheck while you wait for your invoice, having access to cash as soon as you generate the invoice for services is a must in this industry.
Oil, Gas, Mining, and Construction
There is money to be made in energy, but taking advantage of an energy boom requires equipment and personnel, and you will need to pay for these things up front before you can generate a profitable commodity. With invoice factoring you get cash right now to get all the necessary goods to turn a profit.
As a manufacturer you must purchase all the raw materials and create your goods to sell before you can collect payment. Without continual cash flow your next production might be stalled every time you send out an order and wait for payment, which will most definitely hurt your profits.
Find Out if We Can Help
Whether you’re in these 3 industries or another industry, if increased cash flow could help boost your business, fill out our rate form to find out if our factoring services can get you the working capital you need today.[hs_action id=”1489″]