When starting a new business, there are so many aspects that are reliant on cashflow. Large corporations can wait months for payments to go through, but smaller companies simply cannot.
Small Business Funding Receivables
That’s where funding accounts receivables come in. Accounts receivable financing companies can help your new startup or small business get a better hold of all your finances. Rather than waiting months for your clients to make their invoice payments, you can receive cash nearly instantaneously and address all the financial concerns facing your organization.
Keep in mind, it will usually take about 48 hours to get your first round of funding set up. As soon as you’re on board, however, you will receive your invoice payments in less than 12 hours sending out the original invoice payment schedule.
After funding accounts receivables, there are plenty of important things that you and your business can use the additional money on, including:
- Purchase inventory
- Offer credit terms
- Pay bills
- Give vendor discount
- Open new locations
- Hire more staff
- Make smart investments
- Get out of business debt
Here is an explanation of how the entire funding process works:
- Step 1 — Developer products or services to your clients as normal, but send a copy of the invoice to your direct lender.
- Step 2 — Your invoice factoring direct lender will advance as much as 97% of the face value of your invoice within hours of receiving it (again, after the initial 48-hour period). You won’t have to wait anymore to get paid!
- Step 3 — As soon as your invoices are due and your clients need to make payments, your direct lender will work on your behalf and receive payments from your clients.
- Step 4 — Once the payment has been received from the customer, your direct lender will send the remaining balance of the invoice to you, less a small fee. Then, you can get back to work and use that cash to improve virtually every aspect of your new business.
Don’t let cash flow problems ruin your excellent business idea. If you want to turn unpaid invoices into immediate cash and learn more about funding accounts receivables and working capital funding strategies, give Eagle Business Credit a call right away!