Factoring Invoices for Small Business Insurance

Article by Kristin Gabriel

Factoring invoices just may be the new trend insofar as it’s an excellent way for small businesses to be prepared for unexpected events. What if there is a death of a partner or employee, a lawsuit, or a natural disaster? If you are a small business that needs insurance protection, but cannot afford it right now, then think about how invoice factoring for small business could help provide the much needed cash to cover insurance costs.

As we all know, there are many types of insurance for nearly any business risk that you can think of, from worker’s compensation to home-based business insurance. That’s why it’s important to look at the cost of certain premiums then make certain the coverage is justified.

Here’s one example: worker’s comp helps pay for an employees’ medical expenses and missed wages if they get injured while they are on the job. The amount of insurance employers must carry, rate of payment, and what types of employees must be carried varies state by state in the U.S.

There are different needs, for instance, some business owners purchase general liability or umbrella liability insurance, which typically covers legal negligence issues, and protects against bodily injury or property damage,judgments or settlement bonds, medical expenses, or lawsuits.

What’s more, manufacturing companies that distribute retail products have to worry about coverage because they are liable for product safety and defective products. Any service rendered may be capable of personal injury or property damage, defective products, negligence, and breach of an express or implied warranty. Typically, most home business owners don’t realize that homeowners’ insurance policies do not usually cover home-based business losses. This includes personal and advertising injury, loss of business data, crime or theft, disability and property, as well as professional liability insurance.

Of course today, Web-based businesses need specialized insurance that covers liability for damages that might be done by hackers or computer viruses online. There are special e-surance policies that cover specialized online activities, including lawsuits resulting from banner advertising or electronic copyright infringement. There is also insurance that covers losses during fires, or even natural disasters.

Due to today’s economy, many small businesses need insurance protection but can’t afford it. That’s where invoice factoring for small business could help provide that much needed cash every month to cover insurance bills and provide protection.

Factoring has been around for more than 4,000 years and it is an extremely fast way to turn accounts receivables into cash. Rather than waiting 30, 60, or sometimes even 90 days for invoices to be paid, today’s spot factoring services allow you to get cash fast, and for only one invoice at a time.

About the Author

Kristin Gabriel works with The Interface Financial Group, http://www.ifgnetwork.com, North America’s largest alternative funding source for small business. The company provides short-term financial resources including invoice factoring, serving clients in more than 30 industries in the United States, Canada, Singapore, Australia and New Zealand.

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