Anyone in the IT industry knows that projects, particularly large-scale projects, can take several months to complete, and you won’t be paid until the project is finished. Additionally, if you are in the business of providing IT staff, you also know that you will be invoicing on a monthly basis for services completed and expect to pay your staff on a weekly basis. If these scenarios sound familiar, you need to consider using invoice factoring for technology companies.
Not all factoring services provide invoice factoring for technology companies. Typically this requires experience in the industry and a good understanding of the technology business. However, when you find a company offering factoring, you can have access to cash flow needed based on your outstanding invoices.
How it Works
When you work with a firm providing invoice factoring for technology companies, they recognize that those outstanding invoices are valuable assets. These companies buy those accounts receivables, either some or all of them, and provided funds up to 90% of the value within days.
All you need to do is complete a short online application for approval. There is no need for a credit check on your company and since there are no long term contracts you can terminate the agreement whenever you want without any penalty.
When your customers pay their invoice to the factoring company, the factor will deduct their fees and provide you with the remaining amount. Additionally, they will manage all your collections, so you and your staff don’t have to worry about the invoices once they have been turned over to the factor.
The firm offering invoice factoring for technology companies will also verify the creditworthiness of your customers and verify your invoices before advancing any monies to you. , Additional Perks
When you select a top service offering invoice factoring for technology companies, you will also have access to your account through their secure online portals. This provides the information on the status of all your payments and balances, which is necessary for effective decision making.
No matter what type of technology company you operate from providing IT staff or web design services orproducing hardware or software, invoice factoring for technology companies can be helpful to your business. With the cash to take on new customers or take advantage of market opportunities, it is a superior choice to other types of business funding options.
