Top 10 Benefits of Disaster Recovery Invoice Factoring

Disaster Recovery Invoice Factoring

Benefits of Invoice Factoring for Disaster Recovery

Natural disasters are simply a part of life. Fires, hurricanes, winter storms, tornadoes, tsunami, and earthquakes can reach havoc on local economies. As a business, it’s imperative to keep ahead of the risk and be well prepared when the worst does come. Factors have special disaster assistance program provides emergency non-recourse invoice factoring; credit protected working capital for companies across the US that are affected by a disaster. These affordable and fast working capital options help companies stay cash positive through the increased demand for critical cleanup and repair. There are funding program assists with FEMA contract financing, and those companies awarded FEMA contracts such as time and material contracts.

Invoice factoring is perfect for many of the types of work that must be done after a disaster; healthcare medical staffing, technology, construction, telecom, freight, emergency workers, energy suppliers, storm debris clean-up, government contracts, and other business funding needs to be associated with both natural and human-made disasters.

What are the Top 10 Benefits of Invoice Factoring for Disaster Recovery?

1. Disaster Relief for Companies with Bad Credit

When a business has poor credit from IRS obligations, being a startup or perhaps only have one or two clients, it’s nearly impossible to obtain a loan. In cases of a disaster, business-closure and other extraordinary business pressure, obtaining funding are imperative to keeping afloat. Invoice factoring funding is based on the credit of the business’s client base. Meaning, factoring is an excellent option for a company that isn’t able to leverage their credit but can lean on the good credit of their clients.

2. Invoice Factoring Funding is Fast

Typical business loans can take weeks to get approval. In times of disasters, working capital needs to be approved and brought into the business immediately. There is no room for waiting. Invoice factoring can mean advances up to 100% for staffing companies that are wired into their account as fast as 24 hours.

3. How much does Invoice Factoring Cost?

Invoice factoring can be an affordable alternative to SBA loans, FEMA loans and standard bank loans in times of direr need. Typical 30-day rates are .79-1.99% without adding to a company’s debt.

4. Is Client Concentration an Issue?

No, unlike banks or other factoring companies, factors don’t shy away from single client factoring. Factoring companies understand the difficulties of growing a young company. If you have a growing business and you deal with creditworthy customers, factors can advance you up to 90% on your outstanding invoices.  Factors will happily wait the 45-60 days for your customers to pay.

5. Do Startup Companies Qualify?

Yes, with our A/R Invoice Factoring and Purchase Order Financing programs, factors provide new companies with a lifeline of fresh, safe capital to stay afloat during a disaster. If you work with creditworthy customers, you can get an advance of up to 90% of your current outstanding invoices. Factoring companies will happily wait 45-60+ days for your creditworthy customers to pay. No longer will you have to turn down big contracts or large orders because you are undercapitalized.

6. Disaster Relief for Companies with Tax Issues

Several factoring companies have been dealing with the IRS. They don’t shy away from providing strained companies funding with tax problems or IRS issues. Also, factors will negotiate the subordination with IRS and get you the funds you need quickly to get the tax lien lifted. If your current finance company has cut you off, factors can buy them out.

7. Invoice Factoring Adds No Debt

Bank loan adds debt to your balance sheet and always appear as a liability. Instead, it is a sale of your assets (receivables). Hence, it is debt-free financing. This structure is lucrative to large companies for funding.

8. Non-Recourse with Credit Protection Means Less Risk

Each one of your customers will have a predetermined credit limit: For example, $30,000-$3,000,000 per month. What the factor advance you plus the factoring fees will be covering for bankruptcy protection via our policy. Factors will always pre-approve your customers before funding your invoices. Your salespeople will have a pre-approved list on whom to solicit for new sales. No wasting time on potential clients who don’t pay their bills. In addition, as your clients make payments regularly with excellent credit history. The factoring company can raise their credit protected limits.

9. Meeting Payroll Requirements Fast

There are factoring companies that offer true same-day 100% Payroll Funding. Once an account is established and will receive a fax or an electronically generated copy of the invoice with any backup documentation by 10-11am, funds will typically be wired to your account by 4 pm that day.

10. How is Invoice Factoring Ideal for B2G Contractors?

Now you can get direct financing for your government contract with factoring companies. Consider Paragon Financial Group, a factor that specializes in dealing with government contracts. With over 25 years of experience in dealing with the government, we know exactly how to provide you, the business owner, with the cash you need to keep running and growing your business. Paragon Financial Group is a SAM registered member.

In times of disaster, it’s important businesses act swiftly, stay efficient and effective. Invoice factoring allows a myriad of businesses, even struggling ones, to move fast, smart and efficient to secure the funding they need. Don’t ever get caught in a situation that puts your company at risk. Open up an account with Paragon today!

Get funding today with Disaster Recovery Invoice Factoring.

Apply Securely, call 888-400-5931 ext 1 or email us.

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