When Should Your Business Think About Invoice Funding?
Written by moxysupport on July 27, 2015
Running a profitable small business certainly is not an easy task. It takes a lot of effort and commitment and probably more than a few 60+ hour work weeks. But, whether you started a business from scratch or bought an existing one, most likely you were aware of the kind of work you would have to put into it and the challenges you would have to face. You knew it would be tough but definitely worth it in the end, especially now that your business has taken off.
However, success does come with a price a lot of the time. While you may be flooded with orders, do you find that it can take a while to get payment from your customers? That is the double-edged sword of running a successful business; because you are doing so well, often you do not have the cash flow to sustain it. This is where invoice funding can help play a big role. Invoice funding – or invoice factoring – is when businesses sell their accounts receivable in order to get cash. This service can benefit companies in several ways.
The biggest reason to consider invoice funding is because you can get money very quickly. Whatever expenses you have, such as rent, bills, payroll, or anything else, you will be able to cover them almost right away. You can keep your business flowing without being reliant on customers who may take weeks (or even longer) to pay you.
Getting a loan these days can be very difficult. Banks and other lending institutions seem more reluctant than ever to loan money to small businesses, even when they are doing well. With invoice funding, you do not have to worry about that. Plus, the credit of your company is not a factor at all. All that matters is if your customers can meet their financial requirements.
Your Own Credit Department
When you hire an invoice funding company, in addition to the money you can get, it will be like having your own credit department. They will then be in charge of collecting invoices from your customers and processing payments. This will just be one less thing on your crowded plate.
Back to Business
You did not get into business to chase down payments. With invoice funding, now you will be able to get back to what you like doing best: running your business. Plus, with the money you will have on hand, you may be able to expand and do new things to help it grow.
Although your business is doing well, one day you may look around and discover that you have sold out of your product, yet your coffers are nearly empty. If this happens, invoice funding is a great solution, and no one knows it better than US Funding. We have been helping businesses in the Triad area meet their financial obligations for over 15 years, and we can do the same for yours.