As more small and medium business owners turn to invoice factoring to accelerate growth and address rising costs caused by inflation, the program options lack clarity.
EL PASO, Texas – April 28, 2022 – (Newswire.com)
Leading invoice factoring firm Viva Capital says more businesses are taking advantage of the financing solution in recent months, a trend likely accelerated by rising costs caused by inflation. However, the differences in how companies and individual factoring programs operate leave some with more questions than answers. The organization responds to it in “How to choose the right factoring company? », a new guide available on VivaCF.net.
“The guide references statistics from the US Small Business Administration, which indicate that only half of all small businesses last five years. Eight out of 10 lose ground due to cash management issues per entrepreneur. Meanwhile, the latest Small Business Credit Survey indicates that 30% of small businesses that need financing do not apply, while two-thirds of those that do do not receive the amount of financing needed. These conditions make invoice factoring a lifeline for growing businesses, but business owners often struggle to find the right factoring partner,” says Greg DiDonna, president and partner at Viva Capital.
“When you look at the details of the program at scale, it’s easy to think that multiple companies are offering the same options,” says DiDonna. “But, there’s usually more than what appears on paper.”
DiDonna says, “One of the biggest benefits of invoice factoring is the ability to receive same-day cash for unpaid B2B invoices. Small businesses often rely on quick funding to cover urgent expenses like payroll, especially during times of rapid growth. While companies sometimes say they offer this service, it doesn’t always happen that way in practice.
“Companies have come to us specifically for this reason,” continues DiDonna. “They were promised quick funding when they signed up with another factoring company, but it never materialized. As a result, they had no choice but to pay late employees, which created a whole host of other problems. It was a huge relief for them to come to us and get reliable financing within the promised time frame.
Businesses can avoid problems by digging into each factoring company they’re considering, according to the Viva guide. Rates and terms and conditions are important, but business owners should also review the factoring company’s track record, including time in business and reputation.
Small business owners interested in exploring alternative financing solutions or receiving a free quote are encouraged to visit VivaCF.net.
Founded in 1999, Viva helps B2B businesses of all types accelerate cash flow with specialized financing solutions such as factoring, accounts receivable financing and asset-based lending. Their simple qualification process makes it easy for small and medium-sized businesses to obtain vital financing despite a lack of credit or time in business. Additional information is available at VivaCF.net.
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