For IT consulting companies, as with many businesses, payroll is often the largest expense. While you have to pay your employees or independent contractors on a regular schedule, you can’t
always count on your clients to pay you on time. Larger companies often pay invoices 30 days or more after receiving them. This can put a strain on your cash flow. Invoice factoring is one solution that allows you to collect on accounts receivable on a regular bas
What is Invoice Factoring?
Invoice factoring is a convenient form of financing that involves a business selling its invoices to a factoring company. Once the invoices are submitted and verified, you collect payment almost immediately. You decide whether to factor some or all of your invoices. Your clients then pay the factoring company.
Benefits of Invoice Factoring For IT Consulting Companies
Here are some key benefits of invoice factoring.
- You get maximum cash flow. When you factor invoices for IT consulting, you can get as much as 93% of the billed amount within 24 hours. You can use this money for payroll or other business expenses such as marketing or investing in new equipment.
- It’s a very flexible type of financing. Compared to financing options such as bank loans, factoring is extremely flexible. You can get funding when you need it, either short or long-term. As your company grows and you acquire more clients, your funding can increase accordingly.
- Obtain financing without debt. One downside of loans is that you accumulate debt. Interest builds and your credit score can be impacted. With factoring, you are not taking on any new debt.
- You get bad debt protection. When a non-recourse factoring company approves your customer’s credit, you are protected if your clients fail to pay for credit reasons. In other words, the factoring company guarantees all invoices that are factored.
- It saves your business time and effort. Managing accounts receivable is time-consuming. When you factor invoices, the factoring company will handle collections and AR.
Why IT Consulting Companies Choose Riviera Finance
If you decide that invoice factoring is the right choice for your business, it’s important to choose the right partner. Riviera Finance is a leader in this field, with over 50 years of experience working with companies in many industries. The following are some reasons so many clients choose Riviera.
- Reliable — With more than 200 employees across the United States, Riviera provides consistent and dependable services.
- Fast response and delivery — Riviera understands that every day counts when it comes to receiving funds. We offer the quickest cash turnaround time in the industry.
- Financial stability — You want to work with a company that’s stable. Riviera has earned a profit every year since it started in 1969 and is still under its original ownership.
- Personalized service — Riviera understands that every industry and each individual has unique needs. We tailor our services to each client.
- Convenience — You can access your accounts 24/7 using Riviera’s Online Account Management (ROAM) system. Riviera also has 25 locations and phone support to make sure you can get access to the information you need.
- Simplicity — Applying for invoice factoring is a simple and straightforward process. There are no application fees or long-term contracts. In contrast to loans, you can be approved quickly so you can start getting paid for invoices.
With more than two dozen invoice factoring offices across the United States and Canada, Riviera Finance has the team in place to help your business. To learn more about financing options for IT consulting companies, contact Riviera Finance today.
