Invoice Factoring for Furniture Companies

Furniture and Home Décor companies that manufacture, distribute, or sell furniture and other home furnishings often carry a lot of stock. It is natural to the business but can be risky, particularly when a large order is placed.  In some cases, clients may request that delivery and payment be delayed due to the project’s incompleteness.

Are you struggling to meet your short-term obligations? Do you have established clients, but your cash flow is negatively impacted because they delay delivery and payment or pay 30, 60, and even 90 days after receiving your invoice? Factoring is a reputable business funding alternative. Sell your accounts receivable to us, and we will provide you with capital. We pay a large percentage of your invoice upfront for work already completed.

Furniture Factoring vs. Bank Loans

Bank loans are approved based on your furniture company’s operational and credit history. If the loan is approved, your company incurs debt that must be repaid over a set period, with interest. Factoring provides funding solely based on the credit strength of your clients. You incur no debt and pay no interest.

Top Challenges in the Furniture Industry

  • Modern furniture design. It is challenging to design furniture that accommodates the preferences of the different generations, whether Generation X or Boomers. 

  • Raw material sustainability. Sustainability is becoming more important to consumers. Furniture companies try to repurpose unused furniture instead of using raw materials. 
  • Enhancing flexibility and inventory level. It is costly to be flexible, monitor inventory levels, and be ready for a quick change in production lines when necessary.

Furniture Companies

How to Run a Successful Furniture Company

There is always a market for quality furniture and other home furnishings, but it must be accompanied by excellent customer service, fair pricing, and efficient delivery services. You might not always have the capital to add new collections to your merchandise offerings, but a factoring company provides funding as soon as an agreement is reached.

Financial Flexibility with Invoice Factoring in the Furniture Industry

Maintaining a steady cash flow is crucial for companies navigating the complexities of manufacturing, distribution, and retail within the furniture sector. Invoice factoring helps with financial flexibility, particularly for those grappling with the prolonged wait times associated with client payments. This innovative financing solution transforms accounts receivable into immediate working capital, enabling businesses to not only meet but exceed their operational and growth objectives without the burden of debt. Factoring companies assess the creditworthiness of your clients, offering an advance on the outstanding invoices and thus providing your business with the liquidity it needs to thrive. Whether it’s funding the launch of a new furniture line, investing in sustainable manufacturing processes, or simply managing day-to-day expenses, invoice factoring caters to the unique needs of the furniture sector. It’s a strategic move towards stabilizing cash flow, fostering business expansion, and securing a competitive edge in a market that values rapid innovation and responsiveness to consumer demands. By choosing invoice factoring, furniture companies can leverage their accounts receivable to unlock growth opportunities, ensuring they remain agile and financially robust in the face of industry challenges.

Financing Options for Furniture Companies

  • BDC small business loan. For a Business Development Bank of Canada (BDC) small business loan, you must have a good credit history and generate revenues for at least 24 months.
  • Bank loan. Bank loans are a traditional funding source, but they can be difficult to secure, and the application process is burdensome and lengthy.   
  • Invoice factoring. The size of your furniture company is irrelevant to invoice factoring, only the credibility of your customers. Invoice factoring fast-tracks the income tied to slower-paying customers. Once the factoring company’s verification process is completed, it advances the largest portion of your invoice upfront and holds the invoice as collateral. Once the debtor pays the invoice in full, the amount held in reserve is paid to you, excluding the factoring company service fee.

Request a furniture factoring quote today.

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Factoring results estimation is based on the total dollar value of your invoices.
The actual rates may differ.

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You can reach us at
1-866-477-1778

Get an instant factoring estimate

Two columns
Vertical
Horizontal
Overview
Name Total
"{{getWooProductName}}" has been added to your cart
Have a promocode?
Promocode Hide Show

Factoring results estimation is based on the total dollar value of your invoices.
The actual rates may differ.

GET YOUR FREE FACTORING QUOTE!

PREFER TO TALK? You can reach us at 1-866-477-1778