5 Ways Invoice Factoring Can Improve Your Bottom Line

Small and medium enterprises (SME) face a whole series of problems that stem from unhealthy cash flow. Invoice factoring can take care of all these challenges, which will directly improve your bottom line. 

Here are just five ways that invoice factoring can solve your biggest challenges:

1. Stop draining resources collecting payment

Invoice factoring is handing over your accounts payable for cash. After you produce your invoice, J D Factors sends you cash. And for you, that’s it. J D Factors does all the work of collecting payment from your customers and clients. That means you can dramatically cut down on administrative staff you’re your personal time asking clients for the money you’ve earned. That’s why accounts receivable financing is an investment that saves you money.

2. Get the stability to take on larger projects

You need steady cash flow to take on the larger projects that will propel your business forward. Under-investing is a mistake, one that many SMEs make because they are afraid of having to pause a project due to a lack of funds. This is a very real concern for SMEs because scaling back or pausing large projects can negatively impact relationships with clients, staff, vendors, and hurt your overall reputation. But, with factoring you have the stability to complete larger, long-term projects without those risks.

3. Manage your workforce

For employees, not getting paid on time and in full is a deal-breaker. What’s worse is your best employees will be the least patient with delays on payday. Invoice factoring will give you better relationships with your employees, who depend on you to deliver their wages and livelihood.

Factoring also gives you the freedom to expand your workforce without worrying that you’ll run out of funds for new employees. This workforce security is necessary for your business to take on larger projects and more work. 

4. Take advantage of new opportunities

You need the flexibility to jump on time-sensitive opportunities when you want to grow your business. Bank loans take time, and even if most of your customers are highly reliable, there is always a chance they may delay a payment. You don’t want to miss a big opportunity because a customer or client is holding out on you. J D Factors provides you with cash for each invoice right away, so you always have the funds on hand to take advantage of unexpected opportunities.

5. Stop worrying about bad debt

Unlike most invoice factoring companies, J D Factors offers non-recourse factoring. That means that if a customer or client doesn’t pay you, we take the loss. This allows you to truly lift the risk of non-payment from your business. You can take on clients with whom you don’t have established relations without worrying if they are reliable. And, you never have to pressure your clients for payment, J D Factors takes care of every step.

Invoice factoring isn’t just convenient, it’s also a great way to grow your business and improve your bottom line. Sound like the solution to all your business headaches? Contact J D Factors now to make your business more stable, efficient, and flexible.