As a response to inflation, banks raised interest rates on loans this month. The rate hike is the third one this month, with at least two more predicted by the end of 2018. In order to lower expenses and avoid the pitfalls of increased interest on debt, Boston businesses are seeking alternative funding strategies.
Leveraging Receivables to Avoid Debt
Instead of throwing caution to the wind and becoming vulnerable to interest hikes on loans, Boston businesses are leveraging receivables to build capital reserves. By using factoring services, local businesses in the Boston area are improving cash flow while simultaneously accelerating their access to revenue. For many businesses, invoices are issued with staggered payment schedules of 30 days or longer. Waiting for payment with aging windows of a month or more can place a big strain on finances, especially if a local business is trying to position itself for growth. Factoring eliminates the waiting period by turning unpaid invoices into cash in as little as 24 hours. Boston businesses no longer have to rely on loans and arbitrary interest hikes for working capital. What’s more, since the unpaid receivables are considered collateral in the transaction for capital, no debt is placed on the books.
Which Boston Businesses Use Factoring Services?
Factoring services are extremely versatile and are used by Boston area businesses across all industries. From manufacturers and suppliers to law firms, healthcare providers, staffing agencies, trucking fleets, and more, local businesses are accelerating cash flow and building up reserves to not only maintain operations but to grow in an increasingly competitive marketplace. Factoring gives more control to business owners and reduces the reliance on debt-based loans with unpredictable interest rates.
More Benefits than Traditional Loans
Factoring services also provide additional benefits to give business owners insights and the ability to focus on growth instead of managing accounts receivable. Factoring offers professional assistance in evaluating the creditworthiness of new customers. The fast turnaround on open invoices also eliminates the need to perform collections on outstanding accounts. The improved cash flow means businesses can cover overhead expenses such as payroll, negotiate better agreements with suppliers, or take advantage of early payment discounts.
Stop Taking Chances on Unpredictable Loan Rates
Durham Commercial Capital specializes in accounts receivable financing for Boston businesses. We offer the most comprehensive factoring services in the area, and our team will work with you to create a solution tailored to your needs. Why put your business at risk for more rate hikes on bank loans, when you can avoid debt and boost your cash flow immediately? Contact Durham Commercial Capital today to get started.