PPP funding helped a lot of small business owners keep their companies afloat. If you already used your PPP money or you never got a PPP Loan in the first place, you may be wondering what your next step in business financing is. This is where alternative financing options like invoice factoring can step in to provide your business with stable cash flow, so you can focus on your growth this year. Invoice factoring is a great small business funding option after PPP Loans.
Funding After PPP Loans
Nearly half (46%) of small business owners that received PPP Loans anticipate needing additional financial support over the next year. Flexible financing options can work alongside PPP funding to support small business owners looking to regrow their businesses. Now, funding options can work to support your business after PPP Loans. Invoice factoring is one of those flexible options.
Invoice Factoring as Business Financing After PPP Loans
If you are looking to improve your cash flow, invoice factoring provides immediate cash for your open receivables. This means your sales cycle does not have to slow down to wait for collections after credit terms. Once you make a sale, you have the cash on hand to take on new and larger orders.
Growing Your Business After PPP Loans
Factoring your invoices is a fast and reliable way to maintain control of the growth of your business. Your funding line grows as your sales volume grows. This means you do not have to reapply to more financing; you already have access. You can also stay competitive and offer credit terms to gain or grow clients.
Keeping Your Business Strong
According to a Yelp study, 55% of business closures during 2020 are now permanent. Further, more than half of B2B payments between small and medium-sized businesses were collected late. Factoring serves as an additional layer of protection to your business. You may be short on time to monitor the state of your receivables. This is where factoring can step in and help your growth process.