Joseph’s business is growing rapidly and in order to keep up, he needs to continually ensure his company operates with the latest technology. The growth has created a financial crunch with the necessary hiring of new employees as well as the ongoing upgrades of the latest software and hardware required to stay ahead of the competition. Joseph needs his cash flow to continue to serve his current clients as well as adding the latest influx of clients to his roster.
Joseph presently invoices customers monthly; however, a consistent delay exists, with numerous clients adhering to a 60-day payment schedule. This situation significantly contributes to his ongoing cash flow challenges. Despite examining several loan options, Joseph found that traditional loans did not suit his needs. It was then that he discovered invoice factoring which seemed the ideal solution for his cash flow requirements. Invoice factoring would provide Joseph with the flexibility he needs. He could cover operating expenses, ongoing maintenance and upgrades, and meet payroll as necessary.