In addition to hopefully having a very successful holiday season, this is the time of year when businesses should be focusing on future plans. It is always wise to review the past 12 months and see what went right and where changes should be made heading into next year. If your business had a prosperous 2015, there is a good chance that you already have orders lined up for 2016, and maybe even beyond. Perhaps these plans have been in the works for quite some time. This is great news, as your company is set up to be successful for a long time. However, there is also a downside to having a business that so many people want to buy from. While waiting for payment from your customers, your cash flow could be hindered severely. Fortunately there is a good solution for this: invoice financing.
What is Invoice Financing?
Invoice financing is a way to get immediate cash for you to use to pay your business expenses, while you wait to collect payments from customers. You know all those invoices you have that are waiting to be paid? You will be selling them. This means that you will not have to sit around waiting for your customers to pay you. Right away your cash flow will improve significantly and you will be able to pay your workers and suppliers and for anything else you need to keep the business running smoothly.
Is Invoice Financing a Loan?
One great aspect of invoice financing is that it is not a loan and there is no money to pay back. The selling of invoices is like any other financial transaction. All of the money you get is yours and you can do with it what you like.
What are the Advantages of Invoice Financing?
Perhaps the biggest benefit of invoice financing is that you will be able to get cash almost immediately. This is especially good if you are under tight deadlines to make your products. Plus, it is much easier to get money this way instead of a loan. In order to get the loan you would need, a bank or other lending institution would have to take a close look at your credit. If it does not meet their high standards, you will be rejected. Even if you are approved, it could take a while to actually receive the cash. With invoice financing, your credit is never an issue. Good, bad, or somewhere in between, it just does not matter. As long as your customers pay what they owe, that is the main concern. In addition, if you did get a loan, you would have to worry about not only paying the money back, but also paying the interest on the loan.
If your business is primed to really take off in 2016, but you are a little worried about your cash flow, invoice financing could be the best route to take. To get more information, contact US Funding. We will talk to you about your business and your needs and let you know all about your options when it comes to invoice financing.