Businesses that have been unsuccessful in acquiring timely payments from customers can take advantage of business services that help them to obtain funds faster. The service chosen by the company determines the way they receive these funds and any restrictions that may apply. If you wish to review invoice factoring quotes today, contact your preferred provider to schedule an appointment.
The Difference Between Services
With factoring, your company can acquire funding from your service provider within a short period of time. However, in making this selection, you are providing a third-party with immediate access to your accounts and confidential information. They maintain an active role in the acquisition of overdue payments. Essentially, the accounts are sold, to the provider for a quick advance. This advance is based on a percentage of the overall balance of the account.
With this selection, the provider is a visible entity associated with your company. They take the initiative to contact the client utilizing their own company resources, and present them with options for settling the debt. Basically, they act as a collection agency that acquires the funds after you are paid the advance.
Invoice Discounting Services
The difference between these services is with invoice discounting options, you maintain full control over your accounts and your credit. The provider doesn’t review any business operations to determine an effective strategy to acquire the payment. They manage the acquisition or collection of the balance owed from your client. You’ll pay a fee to the provider, but maintain full power over the information and the account.
With this option, your provider works as a part of your company to help you collect upfront payments before services are provided. The funds are deposited in an account of your choice after the provider receives them from the client.
As you review the possibilities of collection efforts to prevent a hardship for your business, you will discover these services could act as a safeguard for you. Your selection determines the amount of privilege given to the third-party you hire for these measures. However, this could present you with a guarantee of payment to prevent further financial issues associated with overdue payments. If you wish to review these options thoroughly, contact your preferred provider to schedule a consultation.