Invoice Factoring for Consulting and Professional Service Firms
Invoice Factoring for Consulting Companies
Table of contents
- Invoice Factoring for Consulting and Professional Service Firms
- Invoice Factoring for Consulting Companies
- Professional Services and Consulting Firm Factoring Summary
- What is invoice factoring for professional service firms?
- How to qualify for consulting factoring
- How can I use my consulting firm factoring cash advances?
- How does invoice factoring help your consulting company?
- Bankers Factoring Non-Recourse Services for Professional Service Firms
- Professional Service Companies we fund include:
- Ready for the owner-employees of Bankers Factoring to help you grow your consulting firm business with our award-winning non-recourse invoice funding services, including bad debt protection? Use our fast online factoring application or call the toll-free number 866-598-4295
Professional Services and Consulting Firm Factoring Summary
Invoice factoring gets you a cash advance on your receivable invoices. Receivable factoring may sound like a gimmick, but it is widespread among professional services and consulting firms. In fact, consulting firm factoring is a way to manage your cash flow by providing immediate access to funds before the customer pays.
Why? Because invoice factoring helps you get money in your account faster than waiting for customer payments. You can also use that money to pay the bills or take care of other expenses, such as employee payroll or office equipment purchases. Additionally, you can bypass extended credit terms to your customers and have the free cash flow to make strategic maneuvers.
Consulting firms can improve their cash position by receiving 80 to 93% cash advances within 3 to 5 days of submitting their online funding application. In addition, factoring your invoices injects working capital into your firm for payroll funding, expansion and growth, and all business expenses.
If your professional services agency extends customers’ credit and needs more capital, our non-recourse factoring also includes bad debt protection. Bad debt protection covers your consultancy from uncollected receivables. Thus, we remove the stress if your customer defaults on its invoices.
Contact Bankers Factoring today, and our team can help you secure a customized financing plan for your professional service and consulting firm.
What is invoice factoring for professional service firms?
Invoice factoring is a way to sell invoices to a third party, which pays you immediately in exchange for taking over the collection risk. Your consulting firm receives cash upfront, and the factoring company gets paid later. Invoice factoring has two forms, with or without recourse, and relates to who takes on the risk for bad debt.
With recourse, there is no guarantee of payment if the customer does not pay. Without recourse, means the factoring company takes on risk for uncollected receivables stemming from bankruptcy, insolvency, or protracted short pay.
Non-recourse or without-recourse factoring is the only way for professional service firms to protect their cash flow from uncollected accounts receivable (A/R.) With Bankers Factoring non-recourse factoring, your consulting company avoids customer bankruptcy, short pay, and insolvency risks.
Related article: What is Invoice Factoring?
How to qualify for consulting factoring
As with any financing, you need to meet some requirements to qualify. If your firm is a startup or lacks strong credit, factoring services help overcome funding obstacles. Qualifying for receivable financing depends on your customer’s creditworthiness. The better their ability to pay, the better your chances to receive working capital.
The amount of money you receive depends on your funding amount, customer profile, and overall risk of the agreement.
Factoring companies look at factors such as:
- The credit quality of your customers (this means whether they have good credit scores)
- How long has it been since they received their last invoice
- How many invoices are overdue – what does the A/R aging summary show?
- Are there existing liens against your invoices or business assets?
Related article: 8 Requirements to Qualify for Invoice Factoring Services
How can I use my consulting firm factoring cash advances?
With your factoring cash advances, you can use the money to pay staff consultants or grow your firm. If you have outstanding bills past their due dates, the money from your factoring facility will allow you to settle them and clear your books. With more resources at your disposal, there is no telling how far you can go!
Suppose the business is booming, and you need a bigger office space or another vehicle for employees to travel in. In that case, this extra capital could also help fund those projects. Regardless of your expansion plans, you need access to flexible funding.
Related article: How Does a Factoring Company Work?
How does invoice factoring help your consulting company?
Accessing working capital quickly. If there is one thing that slows down growth in businesses like yours, it is cash flow problems. With invoice factoring, you can get funds immediately after delivering services. Receive upfront cash advances instead of having to wait for payment in full. You have more time and money available for growing your business rather than managing receivables and paying bills out of pocket.
The benefits of invoice factoring for professional service firms include the following:
- Quick cash flow
- Non-debt credit line for growth
- Less stress about unpaid invoices
- Reliable and predictable cash flow
- Less time spent on collections and administration
- Improved Working Capital Management
- Flexible Funding
- Bad debt protection – only at Bankers Factoring!
Related article: The Pros and Cons of Invoice Factoring
Invoice factoring can help modernize your cash flow management and give you peace of mind.
Invoice factoring is a way for professional service firms to improve their cash flow management. The process allows clients to get paid faster, freeing up money in the firm’s bank account for other business needs. Invoice factoring can help professionals avoid penalties and late fees associated with unpaid invoices.
Bankers Factoring Non-Recourse Services for Professional Service Firms
Consulting firms and professional service providers can secure protected working capital through non-recourse factoring. By eliminating the extended customer payment cycles, your firm can hire new staff, increase cash reserves, and invest in your future. We make it easy for your company to focus on operations and your book of business. With up to 93% cash advances, bad debt protection, and funding within five days, Bankers Factoring is the best non-recourse factor.
Professional Service Companies we fund include:
- Financial services and advisory
- Law firms
- Property management companies
- Security guard agencies
- Janitorial services
- Management consultancy firms
- Technology/communications consulting firms
- Staffing agencies
- Accounting firms
- Industrial services
- Marketing and Advertising agencies