Factoring.io, a Wyoming-based invoice and accounts receivable factoring company, started this weekend with the goal of closing the “invoice financing gap.”
In a news release, the company stated, “Invoice factoring remains a popular source of alternative financing for small businesses in the United States.”
“However, for small enterprises, invoice financing may be complex and costly.” Factoring.io will offer invoice finance and asset-based lending at far lower rates than traditional lenders, making it more accessible and affordable to small businesses.”
According to the organization, this sort of financing has various advantages for small businesses, including the possibility to get money quickly for outstanding invoices rather than waiting for one to two months for payment.
It also gives a “low-cost option to finance internal business growth projects,” as well as increased creditworthiness and access to financing, according to the news release.
As previously reported, small to medium-sized businesses (SMBs) are increasingly turning to digital solutions to help them handle cash flow issues.
“Inflationary pressures are eroding business profits.” Interest rates continue to climb, making it more difficult to take on debt or use traditional financing channels to ensure that there is enough money in the bank to keep the firm running.” “SMBs have been gasping for air if working capital is the oxygen that keeps every firm, large or small, alive and well.”
According to research, 12% of Main Street SMBs do not know if they will be in business in 2024. Furthermore, 70% of the SMBs polled reported that supplier costs had increased in the previous year, prompting 57% to raise their pricing.
Passing on costs to customers, on the other hand, can only go so far because these customers are also feeling squeezed by the same economic situation.
