As the year 2018 comes to a close and the new year of 2019 approaches there are many families who are dealing with the harsh realities of their financial budgets. When month after month your income falls short of your expenses, the end of the year can seem alarming. As families prepare their budgets for the new year, in fact, there are many who are looking for extra income opportunities to help out in the coming months. And while many individuals and families understand the implications of dealing with a tight budget, imagine the stresses of being a business that is facing similar challenges.
For companies that are waiting on payments from clients so that payroll expenses can be met, the end of the year, and even the end of the month can be difficult. As a result, there are many businesses, both large and small, that rely on money factoring companies to bridge the gap between outstanding income and immediate expenses. Traditionally, money factoring companies can provide a long term solution for businesses like trucking companies that need to meet payroll and other expenses before their clients pay outstanding invoices.
Unpaid Debt Causes Many Small Businesses to Struggle
Sometimes called invoice funding companies or load factoring companies, money factoring companies are a viable option for businesses of any size. And while these services can also be an advantage for large businesses, they are often especially helpful to small businesses so they can avoid waiting 60, 90, or even 180 days for payments from customers. Often less expensive than the interest that would need to be paid on a short term loan, factoring companies can help small businesses bridge invoice payment gaps with upfront payments as high as 90% of the original invoice.
There are many options for getting advance business capital, but many businesses see the use of money factoring companies as the most economical way to meet their financial obligations.
The latest research indicates that if all invoices were paid on time, U.S. small businesses could collectively hire 2.1 million more employees, which would reduce unemployment by 27%. It should be no surprise then that this unpaid debt can be a monthly problem for businesses of any size.