Kansas Factoring Companies

With invoice factoring, a business sells its accounts receivable to a factoring company at a discount in exchange for immediate cash. The factoring company then collects payment from your customers and refunds the remaining balance to you once all of your debtors have settled their accounts, minus a fee.

Other than invoice factoring, there are a few alternative financing options that you could consider to fund your business, each of which can be obtained with your accounts receivable. 

One option is accounts receivable financing or invoice financing. This is similar to factoring, but instead of you transferring ownership of your invoices to a third party (the factoring company), you are using our accounts receivable as collateral for a loan. The loan amount is typically a percentage of the accounts receivable value, and your business must pay interest and monthly payments on the loan until it is repaid.

Asset-based lending is another financing option available to companies in Kansas. You can use your tangible assets, such as inventory, invoices, or equipment, as collateral for a loan. 

With a merchant cash advance, your business receives a lump sum payment in exchange for a portion of your future sales. You then repay the advance like a loan, plus a fee.

While small business loans are an option for Kansas businesses, they can be difficult to obtain, particularly for businesses with poor credit or limited collateral. Small business loans can also take weeks or even months to secure, which can be a significant challenge for businesses that need immediate cash flow assistance. 

Invoice factoring, on the other hand, provides businesses with immediate access to cash by leveraging their accounts receivable without requiring collateral or good credit. It provides faster funding than traditional lenders. Businesses can receive cash within a few days of submitting invoices for factoring, compared to the weeks or months it can take to secure a small business loan. 

Another advantage of invoice factoring is that it is not a loan, which means businesses do not incur debt or interest payments. Instead, the factoring company purchases the accounts receivable and takes responsibility for collecting payments from customers.

The Kansas economy has been growing steadily in recent years, with a strong focus on agriculture, manufacturing, and energy. According to the Kansas Department of Commerce, the state has a highly skilled workforce, a low cost of living, and an excellent business climate. Kansas also has a favorable tax structure, including low corporate tax rates and no sales tax on machinery and equipment used in manufacturing.

With a diverse range of industries and a favorable business climate, Kansas is an excellent place for businesses to grow and thrive. Factoring companies in Kansas provide businesses across many industries with valuable cash flow solutions to help them to grow in this booming economy. 

To be sure you’re making an informed decision when choosing a factoring company, read through this Invoice Factoring Guide to learn more about invoice factoring and how to find the ideal factoring partner in Kansas.

Alternatively, get in touch with the Invoice Factoring Guide team, and we will conduct all of the research for you and match you with the best Kansas factoring company for your unique cash flow situation.