Financing Using Invoice Factoring Services

Many small business owners go to the Small Business Association (SBA) website to seek ways to get alternative funding. There is a lot of information but what you won’t find is how to use invoice factoring services to get cash fast.

Once you answer the SBA questionnaire they will provide a guide to programs for which you could be eligible. The SBA Loan Application Checklist includes a list of documents and options required in order to apply for an SBA loan. There are some suggestions if you are seeking financing to help start a new venture, or financing to expand your business, as well as some guidance if you want help exporting products or services overseas.

The SBA asks what industry your business is in, or if you are a government contractor, in case you’re looking to obtain a government contract, or in case you are seeking funding to help with recycling, energy efficiency, or pollution control. These standard questions also include whether or not you’re in the military community or if you are a minority business owner with disabilities, if you have suffered a disaster, or if you’re a woman in business.

What is missing from the SBA website however is the information on how you as a business owner can take advantage of accounts receivable factoring services. And if you have never heard about factoring services, you should know that this financial tactic is also known as accounts receivable factoring, and invoice financing. But no matter what you decide to call factoring services, a factoring company can provide many small businesses with a bailout plan to survive the recent tough economic times.

Anyone with small businesses (SME), a company with fewer than 50 employees, can take advantage of a factoring services company. The reality is today, a small business owner must be very competent in keeping the business on track when it hits the inevitable difficult times.

Most businesses don’t get paid right away for their delivered products and or services, which seriously can negatively impact cash flow, making it difficult for the business to produce new orders – since they need cash follow for supplies to produce. Ultimately a factoring services company benefits businesses that do not get paid for 30, 60 or 90 days. How? By advancing almost 90 percent of the invoice total, at the time of order fulfillment.

Cash flow is key during challenging times and we have all heard that “cash is king.” SO therefore the key to a successful business might just mean survival during the early stages of a small business. Factoring services can help provide cash within 24 to 48 hours.

This entry was posted in Uncategorized and tagged , , , , . Bookmark the permalink.

Leave a Reply

Your email address will not be published. Required fields are marked *