Some companies that need small business funding have a lot of their capital tied up in accounts receivables. Small Businesses can elect to release this money through a financial process known as invoice factoring.
Factoring is the process of selling your outstanding invoices to a third party in exchange for immediate cash. Typically, you’ll get anywhere from 70%–85% of an advance right away–without having to put up any collateral. Say goodbye to spending tons of time tracking down payments and asking customers where their checks are.
While factoring may be faster than some other financing options, it can be quite expensive. It’s not uncommon for companies to forego 20% or even more of the cash they’re owed in exchange for fast money. What’s more, factoring companies end up collecting payments directly from your customers—which may damage your relationship with them. Additionally, factoring companies may prevent you from doing business with customers who they deem unlikely to repay. Another thing to consider is that factoring companies often require a long-term agreement, locking you in to working with them for a large portion, or all, of your invoices.
With Cloudfloat, we do things differently. Cloudfloat takes the risk away from you core business and takes on the risk ourselves. We extend payment terms to your customer. Your Customer pays via Cloudfloat and you get paid straight away improving your cashflow. Your Customer pays us over time.
Cloudfloat does not provide a factoring service nor does it finance or factor any of your invoices. We help to get your invoices paid immediately. We provide a quick and easy way for your customers to recieve payment terms whilst you get paid now. We call it buy now pay later business finance.
Select the Partner with us button below to learn more about getting paid quickly and improving your cashflow.