Despite what you may have heard, factoring isn’t just for failing, cash-flow deprived businesses. In fact, factoring companies ideally look for clients and businesses that are ready to grow—not just survive. Here are a few reasons why factoring helps grow your business.

How Invoice Factoring Works

Invoice factoring is a straight-forward, alternative funding solution that removes the red-tape from banks and gets you the money you need quickly.


By exchanging customer invoices for cash today.Instead of waiting weeks (sometimes months) to collect on your invoices, sell them and get the funding you need now.

While it does help companies pay bills and meet payroll for employees, it’s also a great way to grow your business.

Reasons Factoring Helps Grow Your Business

Grow Your Business with FactoringWith so much of each dollar required to go towards daily expenses, sometimes growing isn’t possible as quickly as you would like. Luckily, invoice factoring can be your solution (and growth stimulator).

Reason #1 – Factoring Manages Cash Flow Dips

Seasonal businesses don’t have it easy. While you may be racking up enough cash during your busy months that you can easily afford an expansion, once off-season rolls around, just surviving drains all that extra income quickly.

And when you come out of hibernation, are you ready to afford the payroll and other expansion expenses while you wait for business to start booming again?

If the answer is no, it’s time to turn to factoring. Use invoices that will be paid three weeks from now to fund your employees today.

Reason #2 – Helps You Take Advantage of Great Opportunities

When a great opportunity or deal becomes available, the proper answer isn’t: “Well, if I continue saving at this rate for the next x months I can afford it then.”

No. When your business is in transition and ready to expand, you want the ability to say “Yes” when opportunities strike.

Too many business pass on the opportunity to grow simply because they do not have the cash flow available to take on additional clients.

Reason #3 – Allows You Take Strategic Chances and Expand

Starting and running your own business is scary. And when you have the past 5, 10, 30 years attached to your company, it’s terrifying to risk all your company’s cash flow for an expansion.

Instead of burning all your money and being left with no contingency to fall back on, turn to factoring.

Get the cash you need to expand without emptying the bank. The best part? You can use your future successes to pay it off, without ever touching your savings.

Reasons #4 – Gives You the Freedom to Focus on the Long-Term

When you are just making ends meet, without a large profit margin, all of your focus is on the day-to-day, short-term gains.

But, what about investing in your future? What about dreaming of the next best thing for your industry? What about saving for a raining day?

By taking the burden off of meeting daily needs and deadlines, start focusing on the future.

And it doesn’t take much!

Instead of factoring all of your invoices for a big payout, consider factoring only a few. This allows you to start slowly investing without the burden of losing your income today.

Think factoring is right for your business? Ready to start moving past existing and instead grow your business with factoring?

Blue Ridge Factors is ready to help. Contact us today with any questions or Apply Online to get started.