Exploring the Benefits of Invoice Factoring for Your Business

Discover how invoice factoring can help your startup or small business grow and strengthen. Learn about its benefits and how it works.

Fremont, CA: Invoice factoring is a financial tool that allows businesses to access the money they are owed on unpaid invoices. When businesses sell their invoices to a factoring company, they are able to receive up to 98 percent of the amount owed upfront, eliminating the need to wait for payment and reducing the risk of hidden fees, debt, and taxes. This provides businesses with the cash flow they need to invest in their future, cover expenses, and keep their operations running smoothly.

Why Should You Use Factoring?

Invoice factoring benefits small businesses by reducing costs and improving efficiency.

You Can Receive Payment for an Invoice Immediately

Small Business Invoice Factoring offers fast, flexible funding for small businesses, allowing working capital in 24 hours at Viva.

The emphasis is on your customer's credit score, not yours.

Small-business owners often need help with traditional bank loans due to banks' focus on personal credit scores. Factoring companies collect invoices, so relying on good payment history invoices is better.

There is little paperwork.

"How to Get a Business Line of Credit" discusses gathering documents and paperwork for traditional lending. Small Business Invoice Factoring simplifies signup and allows factoring without starting paperwork from scratch.

How Can Invoice Factoring Help Your Business?

Reliability and experience are crucial for small business invoice factoring, enhancing growth and profitability.

Accounts Receivable Factoring Improves Cash Flow

Over 90% of businesses report delinquency, with 16% unpaid, making collection harder and longer.

You are not incurring debt.

Factoring invoices, avoiding debt, and focusing on future growth.

Invoice factoring is inexpensive.

Invoice factoring offers affordable, ROI-driven business lending options.

You have better credit control.

Small-business owners use factoring to build and maintain credit without boosting scores, increasing debt-to-income ratio, or negatively impacting credit checks. It stabilizes cash flow, enabling better forecasting and bill-awareness.

You are free to spend the money however you see fit.

Factoring companies provide flexibility in accounts receivable advance usage, allowing businesses to allocate funds for various purposes without stipulations.

Your Factoring Cash Can Help Your Business Grow

Profitability and growth are crucial for business success; cash can enhance marketing, expand territories, and increase volume.

You are no longer required to pursue unpaid invoices.

Invoice factoring frees you from accounts receivable, allowing you to focus on building more substantial businesses.

You lower the risk of bad debts.

Invoicing is often seen as extending credit to clients, but it's a short-term loan with the invoice's face value as collateral. Factoring companies ensure timely payment.

Which Industries Make Use of Factoring?

Factoring applies to B2B companies that invoice customers post-delivery.

Transportation

Viva offers factoring services for transportation companies, benefiting truckers and brokers.

Oilfield

Viva expands oilfield services factoring for small businesses, accelerating cash flow for large energy companies.

Healthcare

Healthcare companies face cash flow issues, requiring providers to bill insurance companies, rework claims, and pay suppliers. Reverse factoring helps.

Manufacturing

Manufacturing companies face overhead costs; factoring services helps.

Staffing

Staffing companies face payroll and benefits delays, often applying factoring services to cover labor costs.