Benefits of Disaster Recovery Invoice Factoring
As they said, prepare for the worst and hope for the best. Invoice factoring for natural disaster recovery will benefit you and your business. Natural disasters are out of your control and have the opportunity to leave your business in shambles. That is why it is important to prepare your business for the worst with invoice factoring.
Whether your business experiences a fire, hurricane, winter storm, tornado, tsunami, hurricane or earthquake, natural disasters are a part of life and they have the potential to wreak havoc on local economies and businesses.
Alliance One can provide invoice factoring, which will provide you with working capital when you need it most. This working capital will assist companies with positive cash flow during the increased demand for critical cleanup and repair.
Invoice factoring for natural disaster clean-up work is perfect for many of the types of work that must be done following a disaster.
Here are the benefits of invoice factoring for disaster recovery:
Disaster relief for companies with bad credit
If your business has poor credit from IRS obligations, or perhaps you are a startup with only one or two clients, you probably struggle with obtaining a loan. In cases of disaster, receiving funding is imperative to staying afloat.
Invoice factoring funding is based on the credit of the business’s client base, which means that factoring is an excellent solution for a company that is not able to leverage their credit. Instead, they are able to lean on the good credit of their clients.
Invoice factoring funding is fast
In most cases, it takes several weeks for a typical business to get approved for a loan. If a disaster were to occur, working capital needs to have approval and be brought into the business immediately. There is no time to wait.
Invoice factoring allows the funds to be released on an invoice within 24 hours.
The cost of invoice factoring
If you are a business and you have tried to obtain an SBA loan, FEMA loan or a standard bank loan, you probably know that it is not an easy task nor is it very affordable.
Invoice factoring is a wonderful alternative that should be highly considered. Alliance One will advance up to 90% (the other 10% will be held in a reserve account) of the face value of the face invoice amount.
Client concentration is NOT an issue
Unlike banks or other factoring companies, Alliance One does not shy away from single client factoring. We understand the difficulty of growing a young company, which is why we will happily wait the 45-60 days for your customers to pay.
If you have a growing company and you deal with creditworthy customers, Alliance One can advance you up to 90% on your outstanding invoices.
Startup companies DO qualify
Alliance One will provide new companies with a lifeline of fresh, safe capital to stay afloat in case of a disaster. If you work with creditworthy customers, you can get an advance up to 90% of your current outstanding invoices.
Alliance One will happily wait 45-60+ days for your creditworthy customers to pay, meaning you will no longer have to turn down big contracts or large orders due to being undercapitalized.
Disaster relief for companies with tax issues
Alliance One does not shy away from providing companies with funding who have both tax issues or IRS issues. In addition, we will negotiate the subordination with IRS and get the funding you need to quickly get the tax lien lifted. If your current finance company has cut you off, Alliance One can get you the help you need.
Invoice factoring adds NO debt
As you probably know, bank loans add debt to your balance sheet and appear as a liability. Invoice factoring is a sale to your receivables, which is why it is debt-free financing. This is lucrative to large companies that are in need of funding.
Meet payroll requirements fast
When you choose Alliance One as your invoice factoring company, you will be able to meet payroll requirements fast. Once the verification of the invoice is completed, the funds are released on that invoice within 24 hours.
