Spectra Financial Shares How Invoice Factoring Can Keep a Business Healthy And Growing

Online, December 7, 2012 (Newswire.com) - In today's economical environment many businesses are struggling with the challenge of being able to pay their debts as well as their employers on time. Late wages represent a threat for every company, because employers can quit on short notice and this can only take a business down the road to immediate failure. On the other side, many entrepreneurs tend to avoid resorting to invoice factoring companies because, as they say, these companies hold back a percentage of the invoice.

But as Spectra Financial highlights, businesses need cash flowing continuously into their pockets in order to be able to pay for their needs - this applies especially to small businesses, but medium size businesses may also find themselves in need of immediate cash.

Nichole Melillo, contact person at Spectra Financial, declared that, 'the majority of our new clients understand invoice factoring as a debt. We always go through the process of explaining them that accounts receivable financing factoring are neither debts nor loans. If you are in need of money and the invoices you issued are due for pay in, let's say, 40-50 days, you can come to us. We'll pay you the amount of money specified in the invoice and we retain a small percentage of the invoice's value. You get your money and then it is our job to make sure that the funds are released back to us from the company which owed you money. It's as simple as that - what you are doing is sell your invoice to us'.

The main advantage of this practice is that money are immediately transferred into a company's bank account, allowing business owners instant access to the funds. What is more, these business owners don't have to worry about getting paid from their customers, as the issue becomes a problem of the factoring company.

Going on, Ms Melillo emphasises that 'once you begin invoice factoring, you will increase your credit and the cash flow will enable you to pay your vendors on time, thus increasing your trust factor. Being an on-time payer will determine adjacent companies to do business with you, and you will be able to obtain credit from other vendors or contractors'. Ms Mellilos adds, 'it's a small service which can really boost your business and help you get through financially difficult times'.

The Spectra Financial team also identified other positive outcome of invoice factoring, such as reducing the accounting costs, improving creditworthiness and increasing productivity.

These tips can be found on the official Spectra Financial website. Those interested in finding out more information about the company as well as their services and quotes can access their official website, http://www.spectrafinancial.net/.