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Are you a business owner who has a substantial amount of invoices each month? Do you work in an industry that goes through seasonal shifts? Are you a new company that needs a stable cash flow to purchase inventory, make payroll, or get supplies?
If you answered yes to any of those questions, TBS Capital Funding might be right for you. But what do we do? How can we help?
Let’s start at the beginning.
Invoice factoring is the sale of your outstanding invoices to a factoring company (us). We buy your invoices and pay you cash within 24 hours so you can cover the cost of daily operations, payroll, or whatever other expenses you may be facing.
Factoring is an age-old financial transaction that allows you to get cash-in-hand faster than if you simply waited for your customers or clients to pay you. In this way, your business gets the working capital funding it needs to grow, jump on new opportunities, or catch up on expenses.
When you sell us your invoices, we also take on the burden of collecting payment from your clients or customers. It may not sound like much, but the amount of time you’ll save on chasing invoices can free you up to focus on what’s most important to you—whether that’s spending more time with family and friends, searching for new projects, or getting extra time to perfect your daily operations.
Invoice factoring can also be referred to as accounts receivable factoring, in case you’ve seen that term around. Which makes sense, because accounts receivable (A/R) is the balance of money due to you for service you’ve already provided but have not yet been paid for. Accounts receivable factoring and invoice factoring can be used interchangeably, but we’ll mainly use invoice factoring as we move along.
Invoice factoring is not a loan at all. It’s commonly listed as a business financing option, but it does not involve a bank or a lender. Think of invoice factoring more as a definite transaction between your business and us (as the factoring company). By working with us, you get access to your working capital today—instead of in three months. Going through banks or lenders for traditional capital funding loans can sometimes be a challenge. Invoice factoring is a fast and easy alternative to get stable cash flow going without the hassle of going through stringent loan processes and applications. In fact, if
you’ve had trouble qualifying for more traditional forms of capital funding—like bank loans or lines of credit—invoice factoring can be a viable option.
Growing your business doesn’t mean you have to wait on a bank deciding to loan you money. Nor does it require your business to amass huge amounts of debt or get underwater with too many lines of credit. The work your business has already done and/or the services it has already provided is an asset. Invoice factoring is a great option to turn those assets into working capital.
Let’s talk about credit scores. Obviously, it’s ideal to have a high credit score, but life happens. Like other invoice factors, TBS Capital Funding isn’t worried too much about your credit history because we collect payment from your clients/customers. If you have creditworthy customers, invoice factoring is a great way to get some working capital going. That’s not to say that your credit history isn’t considered at all (because it is), but it’s not a make-or-break situation like it would be with a bank or a lender.
If you’re tired of long capital funding applications and strict funding requirements, invoice factoring with TBS Capital Funding might be a good choice for you. With same-day funding, you’ll have more flexibility to use your hard-earned money for things you need now, instead of waiting for months and months to see that payment.
Also, businesses can qualify for invoice factoring even if they’ve been denied a bank loan or line of credit. It’s a transactional process, not a loan. We buy your invoices from you, you get paid, and then we play the waiting game with your customers.
One of the best parts? Invoice factoring with TBS Capital Funding means you end up with zero debt to repay to a bank or a credit lender. We bought your invoices from you, so there isn’t a debt snowball rolling after you.
Cash flow is like a river: full after a good storm and nearly dry if there hasn’t been rain for a while. Slow-paying customers are usually a main source of that drought, and it’s not as simple as asking them to pay sooner. (Wouldn’t that be nice?)
As a business owner, you know that it’s not easy to get customers to agree to shorter invoice payment terms. Many customers are used to longer terms and could potentially take their business elsewhere if you can’t offer an industry-typical term. Sometimes longer payment terms are used in negotiations to win a contract.
For all those reasons, your cash flow river might look like a trickle more often than you’d like. You need some working capital funding to grow your business, make improvements to operations, or jump on that next project. Invoice factoring is a fast and easy way to get that cash flow river flowing again.
With everything you’ve learned about invoice factoring (AKA accounts receivable factoring) and how we can help jumpstart your cash flow, you might be wondering if your business is a good candidate for our services.
Do you have a lot of invoices each month? Does your credit need some work? Do you experience high and low seasons? Do you not have the collateral needed to secure other types of financing? Are you just getting started and need that extra working capital to purchase supplies or inventory? Are you trying to avoid getting into more and more debt?
If you answered yes to any of those questions, we’d be a good match.
Without assuming any debt, you can get a quick boost in your working capital by factoring your invoices. Payment is usually same-day and you don’t have to jump through hoops like you would for a traditional bank loan. You also don’t have to worry about building up a lot of debt, since we’re buying your invoices and not lending you money.
Additionally, you no longer have to wait 30, 60, or 90 days for your customers to pay you for work you’ve already done. You can have your money when you need it and don’t have to worry about chasing invoices around each month. Those new opportunities you’ve had your sights on can be in reach without having to wait and wait for customers to pay you. You also get time back in your day, since we handle the collections and keeping track of who owes what and when.
All in all, invoice factoring with TBS Capital Funding is a smart financial tool for businesses of all sizes and ages. Those unpaid, high-value invoices that collect on your desk can be turned into usable, working capital. It doesn’t matter if you’re a new company trying to find your footing or an established company who wants to seize a new opportunity. Invoice factoring gives you quick access to your money so you can use it when you need it.
The TBS Capital Funding team has extensive experience in owning and managing small- to medium-sized businesses. We have worked with companies providing services in the oil & gas industry, retail, importing, telecommunications, construction, material suppliers, clothing, cosmetics, staffing, and many more. Our wide range of experience means we’ve probably seen it all, heard it all, and know how to make it work.
TBS is among the most highly regarded factoring companies in the nation. In addition to invoice factoring, we also provide purchase order financing, back-office support, free credit checks, contract & payment term reviews, and much more.
Related: TBS Capital Funding Services