Factoring.io Debuts Invoice and AR Factoring Service

With small businesses increasingly strapped for cash, Wyoming-based invoice and accounts receivable factoring company Factoring.io launched this weekend with the aim of filling the “invoice financing gap.”

“Invoice factoring remains a popular form of alternative financing for small businesses in the United States,” the company said in a Saturday (Nov. 19) news release.

“However, invoice financing can be difficult and expensive for small businesses. Factoring.io will provide invoice financing and asset-based lending at much lower costs than traditional lenders, making it more accessible and affordable for small businesses.”

The company said this type of financing offers several benefits for small businesses, such as the ability to receive money immediately for outstanding invoices, instead of waiting for one to two months for payment.

The release adds that it also provides a “low-cost way to finance internal company growth initiatives,” along with enhanced creditworthiness and access to capital.

The launch of Factoring.io comes as small to medium-sized businesses (SMBs) are increasingly turning to digital tools to help them overcome cash flow challenges, as PYMNTS noted earlier this month.

“Soaring inflation is crimping margins. Interest rates continue to march higher, making it harder to take on debt or tap traditional financing conduits to make sure enough money’s in the coffer to keep running,” PYMNTS wrote. “If working capital is the oxygen that keeps any enterprise — large or small — healthy, SMBs have been gasping for breath.”

PYMNTS research finds that 12% of Main Street SMBs have doubts that they’ll still be in business in 2024. And more immediately, 70% of the SMBs surveyed told PYMNTS that supplier costs have risen over the last year, with 57% of them hiking their prices as a result.

However, passing costs along to customers can only go so far, because the same economic climate has these consumers feeling stretched as well.