Do you own a business? Are you facing challenges with cash flow? Are there consistent problems receiving on-time payments from customers? If this describes your situation, you are not the only business owner who faces these obstacles. However, there is a solution. Factoring accounts receivable may provide a convenient way for you to get paid for unpaid invoices when you need the money, not when your customer eventually pays.
Many businesses are using this convenient method of financing to help sustain their operations and also step out and expand their businesses.
Establishing the Financing Agreement
So how do you as a business owner obtain one of the funding arrangements? As with any financing agreement, there is an application process involved including any necessary paperwork. The contractual agreement involved may last for one year or even possible shorter – for instance on a monthly basis allowing for extensions.
The Process of Funding
The process involved in getting the funding you need is easy and seamless. It involves three simple steps. First, you finish the work you owe to your customer. Secondly, you send the factoring accounts receivable company your invoices. Thirdly, you are paid for your invoice, quite often the same day. You simply will not have to wait one or two months to get paid for your work. You get paid when you need the money.
The fees associated with have an invoice factoring accounts are minimal compared to the benefits received. You may need to pay an initial fee for account setup and application processing.
Helping Small, Medium and Large-Sized Businesses
Businesses that are small and large can benefit from factoring accounts receivable services . This type of funding arrangement allows you and your team to focus on running your business and planning and executing expansion rather than collecting payments.
An account can typical be set up in just a few days. This is an advantage over the more lengthy process often involved in obtaining a conventional bank loan. Unlike a bank loan, you are not creating debt with accounts receivable factoring. In fact, the provider of the service to you may even cover your loss if for some reason your customer does not end up paying the invoice.
If you’re ready to solve your business’s cash flow problem, consider the benefits offered through factoring accounts receivable services today.
