Currently, his company, though a small operation, consists of off-site document destruction services as well as a single on-site disposal truck which is also available for transport as needed. His existing clients trust his company’s services – paper shredding, as well as the shredding of credit cards, computer tapes, other forms of media storage in use today. Each client is provided with a certificate of destruction along with its invoice for services.


Dave’s goal is to expand with an additional state-of-the-art disposal truck. While he has saved a substantial down payment, he is still concerned about finances, especially how he will make the needed payments while growing his clientele. He currently invoices most clients monthly, though a few choose to pay semi-annually or annually for his services. Given that most clients choose monthly invoicing with the option to pay in 30 days, Dave knows he needs a way to ensure cash flow and cover the cost of the new truck while he continues to service his existing clients and add new clients to his roster.

Dave has considered traditional loans, but did not feel they were the ideal solution, especially with his goal to double his clients in the coming year with the addition of the new truck. He unexpectedly ran across the option of invoice financing which could provide the needed cash flow to not only help cover the truck payments, but his operating expenses, and maintenance costs as well. Invoice factoring allows small businesses like his to essentially sell unpaid client invoices and access the cash needed for short-term finances without the need for an additional loan. Plus the fees are relatively low.

Invoice factoring will help Dave make the monthly payments on time, with the potential to pay off the truck sooner while he waits for client payments The invoice factoring process is seamless and quick and will aid Dave in bridging the cash flow gap between the purchase of a new truck and acquiring new clients.


Months later, as clients pay their monthly invoices Dave’s document shredding business is thriving and he is doubling up his truck payments. The new truck has helped him add nearly 25 new clients thus far, putting him well on the way to his goal. With the addition of invoice factoring, Dave now knows he can utilize invoice factoring  whenever he needs to meet cash flow challenges as they arise. He can also use invoice factoring to keep funds coming in when slow payers create additional challenges for his business. It also provides peace of mind for Dave and allows him to focus on meeting his annual goals not only for paying off the truck more quickly but also ensuring operations run smoothly.

What’s New