There are various benefits of factoring that are evident and obvious as one delves into different ways to raise working capital. While not all of them can equal the benefits some come close but factoring still remains at the top when it comes to the fastest ways to raise working capital. It offers many benefits to companies of all sizes leaning more on the side of the smaller companies with a small staff and less than perfect credit. Charter Capital is a factoring company that provides factoring solutions to companies looking for instant work capital or companies looking to sell their invoice receivables for other business reasons.

There are various reasons mentioned below for a company to consider factoring:

It is an easy and fast way to raise capital

This has to be the first point on the list simply because it is the major reason why any company opts for factoring. Other than factoring there are various methods of raising working capital but all of them are time-consuming and tedious. The factoring process can be completed within a day and the capital can be released right after. This is the fastest way to get rid of the cash crunch a business has been facing, this capital can be utilized for various needs in the business. It is the remedies to late-paying customers and gives the business funds to expand and take care of current expenses.

When you can’t qualify for a bank loan

Ask any businessman/woman getting a business loan is one of the most challenging tasks they have to go through and there are still chances of not getting it approved after the weeks of running to and from the bank to work. Banks do not easily give out money and it is even tougher in case f new businesses. Factoring on the other hand checks only for your customers’ credibility and if they check out then you are good to cash out your invoice receivables.

Cash without debt

Another reason why factoring service is to be opted for is that unlike a loan which is a debt a factoring company buys your invoice in exchange for a sum of money. This does not translate into debt rather is capital that can be utilized to get rid of debts like the salaries of your employees.

Streamlining your account receivables duties

This is for companies that have a small staff or no collection staff at all. There is a lot that needs to be done in order to get your invoices processed on time, it involves multiple follow-ups, and tallying. When you sell your invoices to a factoring company you sell your responsibilities of collection to the company with it. This way you have one less thing to worry about and can focus more on your business and grow at a faster pace reaching new heights. the factoring company takes care of all the collection work for the business streamlining the collection process.