(PRLEAP.COM) Miami, Florida – Paying suppliers and employees on time just got easier, thanks to invoice factoring, a business financing tool. Many commercial and government clients take up to 60 days to pay invoices, creating cash flow problems for suppliers. Invoice factoring provides financing based on slow-paying invoices, giving businesses the necessary funds to meet expenses and grow.
“Bank financing is really not an option for many businesses,” said Marco Terry, president of Commercial Capital LLC. “Banks have such stringent requirements that few small or mid-sized businesses can actually qualify for a business loan. Invoice factoring provides businesses with a viable financing alternative that is easy to obtain and can be set up in days.”
Invoice factoring allows companies to accelerate their slow-paying invoices, providing companies with liquidity to finance operations and growth. The factoring company does not lend money; instead, the factor actually purchases the client’s invoices at a discount. The factoring company provides the client with upfront money, while the factor waits to get paid by the customer.
Although factoring has been around for a while, it has been gaining popularity lately as the supply of business financing has tightened. Factoring has been a “lifesaver” to many businesses, staffing agencies, and trucking companies that have constant, ongoing expenses and clients that usually pay in 30 to 60 days.
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