Factoring Companies for Small Businesses
Businesses with monthly factoring needs of $25,000 or less often don't meet the minimum credit limits of most factoring companies. Small business factoring (commonly referred to as micro factoring) is a special type of factoring service for businesses with very small revenues.
Micro factoring is comparable to normal invoice factoring; it just deals with smaller volumes and revenues. You get cash up-front for your fresh invoices so you don't have to wait 30 to 60 days or more for your customer payments.
Many small business factoring companies offer factoring services for larger businesses as well, which is good if you expect your company to grow. However, the few factoring companies that specialize in micro factoring services really focus on your small business needs and don't have larger accounts competing for your attention.
Factoring companies handle your accounts receivable collections so you don't have to spend time or money on additional bookkeeping services. Small business factoring rates are usually in the range of 4% to 5%, but small business owners find the service worth the cost. At FactoringClub, finding the right small business factoring company to handle your accounts receivables is very easy, just pay special attention to the smaller credit facilities offered by these factoring companies.