Small Business Invoice Factoring Can Help Your Company Succeed

Written by Fred on . Posted in Business factoring companies, Invoice funding companies, Top transportation factoring companies

The pay days all seem delayed. Ever since you and your business partner started your essay writing service the tutoring and the writing coaching have gone well. And while you are great at helping both high school and college graduates find their voice and make sure that it is part of their papers, you have not been good at the bill collection process. Although you love helping students of all ages learn the writing process, it certainly was not your goal to do all of this work for free. Even when the parents and the students themselves are more than happy with the results, too much time passes between the billing process and the final payment.

As your small business has grown, it has become even more important to make sure that you have a more effective and automatic billing process, including extra bills when a payment has not been made. At times, it has even been necessary to write some pretty uncomfortable emails as you look for ways to encourage people to follow through on the payment end of the transaction.

From the largest freight factoring companies to the smallest tow person writing businesses, bill collection is always important. Finding the right large and small business invoice factoring can help any company more accurately track the hours that need to be billed and making sure that those bills are sent out on a regular basis. The best business factoring services allow companies to succeed. Some businesses, trucking is an example, have to be carefully tracked if you want to remain profitable.
Freight Factoring Companies and Invoice Factoring Services Help Track the Amount and Time of Freight That Is Shipped

Tracking all of the services that you provide for your long list of customers is not always easy, but if you work with the right freight factoring companies you can more effectively bill for the services that you provide and improve the chances that you will collect on those bills in a more timely manner. Unfortunately, research indicates that nearly 60% of invoices are paid late. This can make it especially difficult for small businesses to meet the financial obligations that they have. With the most efficient billing services, companies are more likely to be able to collect what is owed them in a more timely manner.

Consider some of these facts and figures about the importance that accurate invoicing and billing can play in the success of a company:

  • Factoring companies can help small businesses bridge invoice payment gaps with an upfront payment process that provides up to 90% of the original invoice.
  • Currently, there are nearly 28 million small businesses in America.
  • Increasing from 24,797 companies in the first quarter of 2016, bankruptcies in the U.S. increased to 25,227 companies in the second quarter of 2016.
  • Invoice factoring is a type of accounts receivable financing that converts any outstanding invoices due within 90 days into immediate cash for a small business.
  • If all invoices were paid on time, it is estimated that U.S. small businesses could collectively hire 2.1 million more employees, which would reduce unemployment by as much as 27%.

Whether you have recently started a small business with a friend or you are the owner of a large trucking company, it is important to have a scheduled billing process that accurately reflects the services that you have provided. Working with outside freight factoring companies or billing services can help with all of these processes.

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