Joseph Laforte’s Guide on Business Finance and Invoice FactoringMarch 6, 2019
Vice President of Par Funding, Joseph Laforte, shares his guide on how invoice factoring works in the world of business finance.
Having graduated from Rollins College, Joseph Laforte is a dynamic business leader with a proven track record. With years of successfully helping small and medium-sized businesses with the various problems of business finance, Joseph Laforte shares with us a guide on how to successfully manage invoice factoring.
Invoice finance is a wide term used for companies to finance slow-paying accounts. There are two main types of how to finance invoice factoring in the world of business finance. The first one is used by small businesses and it’s considered to be the preferred method, according to Joe, on elite prospects. It consists of a sale to factoring companies in exchange for immediate payments. The second method involves using receivables as a way to secure credit through asset-based loans.
Both methods are proven to work in favor of small and medium-sized business owners because invoice factoring involves by advancing money you’ve already owned. Such is the case that you don’t even need to present a business plan or pass any credit checks, says Laforte. It is a way to avoid any kind of obstacles that would’ve normally made it difficult for small and medium-sized businesses to get funded.
Does Invoice Factoring Solve the Problem of Cash Flow?
“Traditional methods of invoice factoring meant that business owners had to pay huge fees to get emergency funding,” according to Laforte.
Nowadays, though innovative technological means, invoice factoring can act as a cash flow solution for many small and medium-sized businesses. Another problem that invoice factoring solves is late payments.
How Does Invoice Factoring Work?
With invoice factoring from Par Funding, your capital would be in your bank account typically in a matter of 24 – 48 hours. There are a few necessary steps that you need to do in order to submit your application for working capital. It involves you filling up the amount needed, your monthly revenue, how many years you’re in the business, and the repayment time. Based on what you enter, you will get your approval chances instantly back to you. As soon as you get qualified, you will have access to your funds.
Invoice factoring is a great way for small and medium-sized business owners to avoid the stress of being approved to fund their businesses.
With invoice factoring, you can state your business potential to get your small or medium-sized business approved for funding. With relatively small processing time, mostly up to two days, you can get your business the much-needed working capital. As every company needs working capital, invoice factoring is a great way to set you off on a journey to financial strength.
Joe’s experience with angel investments is undeniable. Invoice factoring is a great way to manage your business finance as you will have full, 24/7, control of your finance. By having your invoice factoring approved, you can manage your cash flow for day to day operations that will not hinder the growth of your small or medium sized business.