Hello,
Do any of you guys have experience in using invoice factoring in our industry? The cost seems a little high, 1%/10 days, but that means for every $100k/yr if your average time to pay is 40 days, you'd be paying $4k/year. A little expensive, but to receive invoice payments immediately in our industry that really eliminates the need for a huge amount of working capital.
We are growing quite a bit over the last couple of months and this could be beneficial for us.
Thoughts?
Do any of you guys have experience in using invoice factoring in our industry? The cost seems a little high, 1%/10 days, but that means for every $100k/yr if your average time to pay is 40 days, you'd be paying $4k/year. A little expensive, but to receive invoice payments immediately in our industry that really eliminates the need for a huge amount of working capital.
We are growing quite a bit over the last couple of months and this could be beneficial for us.
Thoughts?