Financing Options for IT Consulting Businesses
Whether you are providing IT consulting services or consulting in other specialties, payroll is likely your largest expense. You have employees or independent contractors that need to be paid regularly. You require the funds to cover bi-weekly or bi-monthly payroll, even if you have not been paid yet by your clients.
So how can you cover this cash flow gap? Invoice factoring is an alternative financing solution to speed up payment of your accounts receivable, improve your cash flow, and cover business expenses.
How Invoice Factoring Works for Consulting Businesses
As a consulting business, you provide man hours of service, then invoice your clients who will generally have between 30-60 days to pay. Invoice factoring can get you paid at the time of invoicing. The invoice factoring company will check the credit of your client’s company before deciding if they can purchase the invoice. Once approved, you will send your invoice to the factor, instead of your client who will advance you cash immediately after verifying the invoice. The factoring company will then send the invoice to your client on your behalf and wait to collect payment in 30 – 60 days, according to the terms of your agreement.
Benefits of Factoring for Consulting Companies
These are just a few of the key benefits associated with invoice factoring as an alternative financing option for IT consulting or other consulting businesses. Understand how invoice factoring could help your IT business grow and expand with additional cash flow.
Recent Funding for IT Consulting Industry
|Type of Business:||IT Consulting|
|Factoring Facility for growing IT consulting business. Waiting 60 or more days to be paid by their business clients made it difficult to pay their employees on time. Now, with Riviera’s non-recourse invoice factoring, they can get paid immediately after services are rendered and not be concerned about clients’ ability to pay knowing that Riviera not only handles the credit review of their customers but also takes on the credit risk.|