Maintain business cash flow with invoice factoring or accounts receivable financing
Is your company finding it very hard to maintain liquidity? Is most of your money lying with your customers as you wait for them to pay up? Are you finding it hard to pay your debts and the interest is piling up? The best solution available to you is in the form of invoice factoring or accounts receivable financing. With people willing to lend you money against your accounts receivables you will never have an issue with cash flow for your business.
What is invoice factoring or accounts receivable financing? It is one of the fastest growing and most popular forms of financing for maintaining liquidity of your business. The way it works is extremely simple. Step 1: Generate invoices to your customers through sales. Step 2: Your invoice factoring or accounts receivable financing funding partner will advance up to 90% of the total invoice amount and the money will be wired to your bank account within 24 hours. Step 3: When your customers pay the invoice balance, the remaining 10% minus the discount fee will be paid to you. This is how it works.
This type of arrangement works wonderfully well for companies that are growing and need cash injection every now and then or on a daily, weekly, or monthly basis. The whole concept of business is based on credits. If you don’t offer credits to your suppliers they will go elsewhere to do their business. While some of your creditors will pay up as per the agreed terms some of them will delay the payment or default on the payment. Even still, it is difficult for many businesses to wait 30 days for payments. As a growing company you cannot afford such issues. So, when you have someone that can advance you cash for your accounts receivables won’t you love to deal with them?
You may argue that you will be paying some money as commission every time you opt for invoice factoring or accounts receivable financing. It is true that there is a certain commission that needs to be paid but when you compare the benefits against the commission that you pay you will realize that opting for this service is any day better.
So, what are some of the benefits that we have been talking about? First of all, your business is always liquid and there are no cash flow problems for your business. Secondly, you can increase business deals with your suppliers because you can offer them finance options. This will work wonderfully well for both of you. You can also save a lot of money because you can afford to spend time on running your business and not chase your accounts receivables. And last but certainly not the least – you don’t need to engage in collections. And when you deal with the best service providers they also help you by analyzing your debtors and informing you in advance when your customers are facing cash flow or credit problems.
So, think no more and opt for invoice factoring or accounts receivable financing if you have the need. There will be no surprises in store for you because you will always have money in your account.
Never have cash flow problems in your business when you opt for invoice factoring or accounts receivable financing.
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