Congrats! You’ve started your own business as a contractor. Your job as a contractor speaks very highly of you and people keep calling you more and more to install roofs, carry rubble, etc. Someone has finally offered you a very large contract, but they’ll pay you after the job is done. You still have to start working as soon as possible, but what if you don’t have the money to hire people and buy materials? Don’t worry, it’s easier to get done than you imagine.
You’ve probably thought: “I can take out a loan and then pay it back later,” but the problem with banks is that they ask too many requirements or are more expensive in the long run. This is when factoring is the option that suits you best.
What is Factoring?
It is nothing more than making you collect the money of contract, invoice, or accounts receivable faster. It is not a loan, it’s your money.
Advantages of Invoice Factoring
- You have liquidity, or money flow, for your business to pay for your materials, equipment, wages, taxes, or other expenses.
- You maintain a good reputation with your suppliers and clients.
- You’re not be stressed and you pay more attention to the quality of your projects.
- Your business grows faster. You will go from having one contract or client to having several, without getting into debt.
- You avoid arguments with clients that take months to pay for your work.
How does Factoring work?
- Once you are given the contract, invoice, or accounts receivable from your client, you fill out our application so can reach out to you.
- We review the general data of your business and ask for very few additional paperwork.
- Once everything is in order and approved, we buy your invoice and deposit the money to you.
- Now you are ready to start working.
At Cultiva Financial we want to help people who have come to this country to succeed, just like you. Come to us and ask about the options we have to help your business grow.
Sources: Invoice Factoring Company, Invex, Rankia