Factoring Can Be a Huge Advantage For These 7 Industries
Since the financial crisis of 2008, most banks have been very skittish about lending money, with approval rates plummeting over the past decade. This has turned a number of businessmen toward factoring, which is a form of alternative lending which can be a huge benefit to companies as they try to survive difficult economic times. These seven industries are the ones which seem to have benefited the most from having their invoices factored on a monthly basis.
Construction companies are subject to seasonal downturns, as well as economic shifts that send the local economy spinning. To overcome these conditions, invoice factoring is a common financial tactic used by many construction companies.
A manufacturer simply cannot afford to be without cash, when it has orders to fulfill and customers to satisfy. Invoice factoring can fill in many of the gaps which get created by an irregular flow of incoming revenues.
Staffing agencies are often subject to local ups and downs of the economy, because no new employees are being hired when there’s a prolonged downturn. Some staffing agencies have found the relief they need through invoice factoring, to help them through dry spells.
The larger pharmaceutical companies may be relatively immune to economic downturns, and for them cash flow may not be an issue. However, for the hundreds and thousands of small to mid-sized pharmaceutical companies, invoice factoring can be a godsend.
Healthcare organizations have no way of forcing clients to speed up their payments, so invoice factoring can be a real life-saver in terms of keeping cash flowing throughout the company.
Invoice factoring has helped many I.T. companies and organizations when they have slow-paying customers who make cash flow difficult to maintain. Even companies at the forefront of technology need help when cash flow dries up.
Energy management is essential for most businesses, and finding ways to save on utility bills can be a real challenge. However, energy companies often take advantage of the opportunities presented by factoring, and that allows them to pass on savings to small businesses.
Invoice factoring with ASA Capital Funding
Even if your business does not fall into one of the seven categories mentioned above, you can receive tremendous benefits through invoice factoring. Contact us at ASA Capital Funding, to see if invoice factoring is right for you and your company.