Diversified Funding Services is proud to work together with the men and women who have represented our great nation in uniform. Veterans embody the values that make our nation great, and as you make the transition from military life to entrepreneurship, we are proud to work together to help you grow your business. One of the major hurdles that any small business can face is obtaining capital to hire a new employee, take on new inventory or add additional equipment. Those steps are necessary to continue building your business — yet, obtaining capital through the credit market or other avenues can be fraught with pitfalls.
How Invoice Factoring for Veterans Works
There are a number of small business loans and credit options that cater to military veterans, and in a number of cases, that might be the ideal option. However, in some cases it’s not. Taking on a credit line can be risky, so for veteran small business owners who would prefer to grow their businesses through more conservative avenues, accounts receivable factoring (also known as invoice factoring) can be an attractive option.
Invoice factoring is not a credit line. That means that brand new businesses with no credit history can be eligible for factoring, as can businesses with little credit history. Instead, factoring works as an advance on the invoices you’re already receiving. Does it take 30, 60 or even 90 days to receive payment from your customers? Factoring works to eliminate those headaches by paying on your invoices in as quickly as 24 hours, giving you cash on hand that you can use immediately while we collect your invoices for you. This means you won’t carry a credit line on the books, you won’t have to collect on your invoices, and the immediate cash on hand will grow along with your business.
Accounts Receivable Factoring for Veterans Services
The relationship with a factor is a lot different than the typical relationship between a small business and a bank. You aren’t just another item on the bank’s books. The factor is responsible for ensuring that your invoices pay, so working with a factor is more like taking on a business partner. Below are some of the benefits:
- The factor organizes and manages your receivables.
- The factor provides risk management services. We screen each of your customers and vendors for creditworthiness, so you can be able to spot a potential payment issue before it happens.
- The factor collects payment, freeing you up from having to deal with the receivables side of the business and allowing you to focus on doing what you do best.
Is factoring the right option for you? Every business is different, so it’s important to review your individual situation thoughtfully and carefully to find us the best option. Give us a call at (888) 744-9778 to see if it’s right for you.