For local businesses of all sizes in Washington, D.C., staggered payment schedules are the largest cause of strain on cash flow. Waiting on payments to trickle in from customers can threaten to slow down operations, or cause financial obligations to go unpaid. Many businesses are turning to invoice factoring in Washington, D.C. to prevent these issues, and rack up growth capital in the process.
The Problem With Staggered Payment Schedules
Issuing customer invoices with paying windows of 30 days or longer is a standard business practice. However, staggered payment schedules lead to problems. Businesses have to wait for payments to come in a bit at a time, rather than all at once. Simultaneously, customers are rarely inclined to make payments immediately. Some customers even forget about the invoices, and need friendly reminders, or worse, have their accounts moved to collection services, which can add weeks onto the payment schedules.
Invoice Factoring In Washington, D.C. Eliminates Payment Schedules
In all fairness to traditional business practices, staggered payments schedules are antiquated. Local businesses that use invoice factoring in Washington, D.C. expedite the accounts receivable process. Instead of waiting on payments or transferring unsettled accounts to collection services, invoice factoring in Washington, D.C. provides a turnaround of less than 24 hours. Businesses can convert open invoices to cash within a single day, and eliminate both payment schedules and the need for collection services.
Using Invoice Factoring In Washington, D.C. Is Not The Same As A Loan
When businesses need working capital to reduce the strain on cash flow, they frequently take out loans. The immediate relief is great, but the lasting effect of debt and impacted credit are not. Businesses that use invoice factoring in Washington, D.C. sidestep debt completely and preserve credit ratings. Invoice factoring is not a loan. Rather, it is structured around the conversion of existing receivables to cash, so business credit ratings and debt do not even enter the equation. Because there are no loan applications to process, invoices for any amount, and in any volume can be converted to working capital within 24 hours, providing businesses with the revenue they are owed without long waiting times.
Find The Best Invoice Factoring In Washington, D.C.
Abel Commercial Funding specializes in working capital solutions for businesses across all industries. If you want to get rid of staggered payments schedules and prevent a strain on finances, contact our team today.