The Benefits Of Invoice Factoring Here In The US

Small businesses are hugely important here in the United States, this is simply just a fact. After all, small businesses make up, in more ways than one, the backbone of this country, with nearly 30 million of them spread out over this land. In fact, it has even been found that small businesses alone make up more than 99% of all businesses found here in the United States – more than 99.5% of businesses, at that. This means that small businesses are, without a doubt, hugely important and even critical to so many people here in the United States.

However, it is much more likely that a small business, one with 50 or even fewer employees, will face more struggles than a larger business or corporation, simply in relation to problems with finances. After all, cash flow problems on a minor scale are typically not that big of a concern to large corporations here in the United States. Small businesses, however, oftentimes bear the brunt of cash flow issues and can seriously struggle because of it, even to the point of needing to be closed down. The data that has been gathered on the subject unfortunately more than backs up this claim, showing that of the businesses that have failed here in the United States, more than 80% ultimately did so because of cash flow problems.

In many cases, this can be unfortunately attributed to unpaid invoices on behalf of those working for small businesses throughout this country. Unpaid invoices are far more common than one might think, as a matter of fact. In fact, more than half of all invoices here in the United States – up to 60% of them, to be more exact – are not paid on time. Some might be paid only just a few days late, but others are much more delayed than that. And for small businesses that rely on a steady flow of money and the funds that they are owed to keep themselves operational, a lack of paid invoices can be hugely detrimental both in the short term as well as in the long term.

Having all invoices paid on time on a country wide scale could have a tremendously positive effect not only for cash flow and the success of small businesses, but for employment rates as well. According to data that has been collected in recent years, the simple act of paying all invoices on time could lead to the ability to hire more than two million more employees across small businesses alone. This would effectively reduce rates of unemployment by as much as 27%, which is a truly tremendous amount by just about any means, especially during periods in this country when the overall rates of unemployment are high and many people struggle to find work.

But this is not the reality, and a lack of invoice payments that are paid on time can put considerable strain on just about any small business found in this country. Fortunately, however, capital credit factoring and small business factoring services have become more available than ever before. The use of capital credit factoring – and the accessibility of capital credit factoring – can actually save a business that is struggling with matters of cash flow, particularly in cases when unpaid invoices have stacked up quite considerable.

But how does capital credit factoring and small business invoice factoring really work? Though not all that many are familiar with it, the process of capital credit factoring and factoring financing on a whole is really quite simple. Typically, the process of capital credit factoring will convert the amount of any unpaid invoices over the course of the last 90 days (the last three months or so) into loans that the small business in question will be able to use immediately. And while the process of capital credit factoring does involve loans, they are typically loans that are able to be paid off as soon as the actual payments for the owed invoices do finally come in. But in the meantime, capital credit factoring can provide business saving funds when they are needed most.