If you work with commercial clients, utility companies and general contractors, you can count on getting steady work. The downside to these clients is that they often take a month or longer to pay their invoices. Waiting for payments can cause cash flow challenges. You need to pay your employees and keep up with other business expenses. One way for underground utility & cabling companies to remedy this situation is through invoice factoring.
Advantages of Invoice Factoring for Utility Cabling Companies
Invoice factoring is a type of financing that many businesses use as an alternative to traditional bank loans. Factoring allows you to collect payment on invoices immediately rather than being subjected to your commercial clients’ timeline. Invoice factoring provides several key advantages to utility cabling companies.
- Pay bills, meet payroll and cover expenses. Invoice factoring provides you with the cash flow you need to meet your financial commitments.
- Buy and maintain equipment. Utility and pipeline companies need to invest in maintaining equipment and upgrading current tools when necessary. Improving your cash flow gives you money to invest in your business.
- Add new members to your crew. Consistent cash flow makes it easier to hire more employees, which can help you grow your business.
- Accept more jobs. As you invest in equipment and employees, you can take on more work.
Maintaining and growing your business takes a certain amount of cash. Waiting for clients to pay invoices can hold you back, as you’re constantly scrambling to keep up with expenses. Utility & cabling companies can use invoice factoring to build up a cash reserve, which can be used for any purpose.
Who Uses Invoice Factoring?
In addition to underground utility & cable companies, if you’re involved in the following types of work, you may benefit from invoice factoring.
- Material Handlers
- Water Main Construction
- Fabrication & Welding
- Pipeline Construction
- Sewer Construction
- Utility Construction
The above are just a few examples. Any business that has commercial clients who pay by invoice can consider invoice factoring.
Invoice Factoring With Riviera Finance
Riviera Finance has been working with all kinds of businesses, including underground utility & cabling companies, for over 50 years. The process is simple and entails the following steps.
- You apply for invoice factoring.
- Riviera checks the credit of your clients and establishes a credit limit.
- You provide your services to your clients as usual.
- You send invoices to Riviera Finance instead of your clients.
- Riviera sends you cash within 24 hours.
- Your clients pay Riviera directly.
In addition to the financial advantages of factoring invoices, the process frees you of tasks related to administrative, billing and collection. You send invoices directly to Riviera Finance, collect payment from them and your clients pay Riviera Finance, which means you have more time to devote to running your business and serving your customers.