You may be running a small business but encountering roadblocks to taking desired steps toward expanding your services and/or product offerings. Having the ability to take the next step in your business is dependent in great part on having a consistent cash flow set up, one without disruption. In other words, when you send an invoice, you need it to be paid promptly and without delay. These issues can be solved for your business by something called small business factoring.
The Old vs. New Way of Financing
Also referred to as accounts receivable funding or invoice factoring, small business factoring is accomplished by paying small businesses for the work they have completed even before they receive payment for the work from their customer. This type of funding is based on your customer’s financial standing and the value of the services you provide to your customer. It is a much easier way of getting the money you need than the old way of trying to secure a traditional bank loan.
Opportunities for Small Businesses
Small business or invoice factoring gives businesses the ability to consistently meet the demands of new customers. This type of funding is only restricted by the amount of work you are able to produce for your customer. The more work you produce and the more invoices you send to your customer, the more funding you receive to fill in the gap between when you invoice and when you get paid.
With small business factoring you can have confidence to take on that new order sent by your customer even if you haven’t yet been paid for your last invoice. You benefit from receiving a steady and reliable source of cash flow. As well, a reliable provider of this funding may even cover you if the customer does not pay for some reason.
Get the Cash You Need Fast
Multiple industries can benefit from having this source of funding, including manufacturing, transportation and construction. The process for receiving the cash you need is very simple. You simply complete the work for your customer. You submit an invoice to the accounts receivables factoring company. Then, you get paid, often the same day!
If you need to improve your business’s weekly or monthly cash flow situation, consider the benefits provided through small business factoring services.
