Owning a business like a machine shop, which operates in an extremely capital-intensive and specialized industry, often requires the need for additional funding, especially if your business deals with slow-paying clients.
While you want to extend reasonable payment terms to your customers, your expenses don’t stop accumulating just because your clients can wait up to 90 days to pay their invoices. Plus, whether you’re manufacturing machine parts from metal, glass, wood, or plastic, you need specialized equipment that comes with a hefty price tag.
These factors, and others, can make it challenging to cover your operating costs, such as payroll and expansion, or even to save for a rainy day. Invoice factoring can help you improve the cash flow of your machine shop, reduce the impact of slow-paying customers, and obtain the resources you need to grow your business.