You’ve worked hard to build up your company, investing long hours and your own money to put your business in a position to succeed. Your product or service fills a real need in the marketplace, and orders have been coming in. The foundation has been put in place that will allow you to take your business to the next level.
Then the next level comes knocking at your door: The Big Order.
Celebration time! You pop some corks, toast your success, and start planning how you are going to fulfill the order.
Then reality sets in…
How am I going to pay for production???
Challenged by ever increasing payment-terms, you may find yourself cash-strapped and unable to meet the growing needs of your business. Your cash reserves are low. Your bank is unwilling to lend you the money you need to grow for a variety of reasons: young business, limited financials, or no credit history.
Are you out of options? Definitely not!
Enter in accounts receivable financing, also known as “factoring.”
Accounts receivable financing can provide working capital when a bank will not. This type of financing can provide the cash flow you need to support the growth of your small business: help fund the production of that big order or advance cash against an invoice once the order has shipped. The companies that lend money against receivables are known as “factors.”
Why can the factor provide financing when the bank can not?
Access to this type of capital is based on the creditworthiness of the customer or client, not your business.
Therefore, even companies with poor credit can tap into cash to run the company against confirmed invoices.
So is accounts receivable financing a viable option for your business?
Take this short quiz and find out ->
- Does your company wholesale goods to creditworthy customers?
- Are you a temporary employment agency that provides contract workers to other companies?
- Does your company provide outsourced services to other companies?
- Does your business have contracts to provide product or services to government agencies or municipalities?
If you said yes to any of the questions above, your company could benefit from accounts receivable financing immediately, which could provide you with the working capital you need to manage cash flow and grow your business.
4 Key Advantages Of Using Accounts Receivable Financing
- No business credit required: Factors make financing decisions based on the creditworthiness of your customers, not your business.
- It’s FAST: Once you are set up with a factor, you can most often have money in your account in 48 hours or less, much faster turnaround than a bank!
- Additional services: Factors provide many additional services to their clients such as billing, collections, and account receivable management, allowing you to focus on growing your business and increasing sales.
- Manage your cash flow: Factoring gives you the liquidity you need pay your bills and grow your business. No more waiting 60 days or more to get paid!
Let Premier Trade tap into our significant expertise to help you find the factoring company that will best help you meet your cash needs, grow your business and take advantage of that big new order coming your way.