Why Invoice Factoring for Disaster Recovery?

Factoring in disaster recovery is a financial service where you sell your invoices to get paid immediately, instead of waiting for 30 to 90 days. It works by selling your company’s active invoices to a factoring company and converting your existing receivables into cash that you can use to cover your operating expenses.

As customer relationships are handled by the factor when handling collections, it’s important to choose a factoring company whose terms and goals align with yours. This is key to keeping good customer relationships.

Given the unpredictable nature of disasters and the complicated payment processes associated with insurance claims, factoring can be an invaluable tool for disaster recovery businesses. Quick access to cash provided through factoring, helps disaster recovery businesses cover immediate expenses, such as payroll, equipment rentals, and materials without waiting for clients or insurance companies to pay.