Invoice Funding Helps Your Business through the Holidays
Written by US Funding on December 11, 2015
The holidays are nearly upon us, and that usually means very good things for small businesses. Because so many people get into the gift-giving spirit this time of year, stores are crammed with shoppers and suddenly the income statement starts to look a lot better. While the holiday season can really benefit any business, it is particularly good for those already doing well.
If people buy from you year-round, chances are they will be buying more now. This can also be a double-edged sword, however. If you sell your products to stores, generally they purchase a pretty large amount at one time. And if many stores order from you, you are constantly sending out large shipments of merchandise. This is all well and good, if you get paid in a timely manner.
But, as you surely have learned, you can’t count on that. If payment is a little late from a couple of companies in March, for example, it might not be much of a problem. So you may be a little late shipping the next batch of orders; if you have a good relationship with your customers, this should not be a big deal. But during the holiday season, there is no room for error.
Companies want what they have ordered and they want it as soon as possible. You can try all you can to explain that things will be late, but it may not make a difference. You could very well start losing customers. The good news? There is a solution to this issue, and it is invoice funding.
What is Invoice Funding?
You have invoices. If your business is doing well, you probably have lots of them. These are records of what you have sold to your customers and how much money they owe you. To you these invoices are worth a lot, but they do not mean anything unless you are actually paid. Until then, they are kind of worthless pieces of paper. But they do not have to be. Instead of waiting to get paid, invoice funding allows you to sell them for immediate cash. It is really that simple.
An invoice funding company will buy them from you so you can get the money you need to keep production going in order to get all of those new holiday orders out. Plus, because you no longer own the invoices, you do not have to worry about them being paid. That is not your problem anymore. Those good relationships you have cultivated with your customers can now stay intact. Invoice funding has suddenly made your life a whole lot easier.
When you sell the invoices to US Funding, not only do you get the cash quickly, but US Funding takes on the responsibility of collecting the payments from your customers. Fast cash without adding a loan to your balance sheet…it’s a win/win situation!
The holiday season is a fun time, but it can also be stressful for business owners. If you do not think you will have the resources to keep your company moving, invoice funding could be the answer. Just get in touch with US Funding to get more information and to learn about your options.