Small Businesses Turn to Factoring for Enhanced Flexibility

As modern payment challenges rob small businesses of flexibility and increase strain, factoring emerges as a leading choice to bolster financial agility.

EL PASO, TX, USA, August 30, 2024 /EINPresswire.com/ -- Leading invoice funding company Viva Capital says small businesses, strained by the modern payment landscape and issues such as extended payment terms and economic challenges, are increasingly turning to invoice factoring to improve financial flexibility. Additional coverage of the topic is available in “Small Business Flexibility: How Factoring Gives You an Edge,” which is now live on VivaCF.net.

The new report draws on research that indicates businesses spend an average of 14 hours each week chasing invoices while payment terms and late payments continue to rise. Industry insiders note that these conditions rob small businesses of their inborn flexibility, making it more difficult for them to compete in today’s market and grow.

“Whereas large businesses are typically slower to adapt to changing market conditions and cannot pivot quickly to seize opportunities, small businesses can use their size to their advantage and move fast,” explains Armando Armendariz, Director of Business Development and Partner of Viva Capital. “However, cash flow constraints limit the inborn flexibility of small businesses, making it difficult to operate, capitalize on opportunities, and grow.”

With experts predicting an industry-wide CAGR of 10.5 percent annually for years to come, Armendariz believes invoice factoring is fast becoming the leading cash flow solution among small businesses. Armendariz contends that the surge in popularity has two primary causes. Firstly, traditional financing is not always viable in these situations due to the lengthy approval process, rigid requirements, and slow payments. Small businesses have increasingly felt the impact of these shifts and changing economic conditions, which has helped factoring emerge as a simpler, more accessible funding solution. Secondly, modern payment trends have necessitated greater flexibility, a concern that factoring addresses in numerous ways.

“Factoring provides immediate cash flow and reduces reliance on traditional financing, which means less debt for businesses,” Armendariz says. “It’s also flexible and versatile, so businesses can tap into it as needed for growth, unexpected expenses, and more.”
Those interested in exploring invoice factoring are encouraged to contact Viva Capital at VivaCF.net.

ABOUT VIVA
Founded in 1999, Viva helps B2B businesses of all types accelerate cash flow through specialized funding solutions like factoring, accounts receivable financing, and asset-based lending. Their simple qualification process makes it easy for small and mid-sized companies to get vital funding despite lack of credit or time in business. Additional information is available at VivaCF.net.

Armando Armendariz
Viva Capital Funding
+1 915-615-6664
email us here