All too often we see business experiencing strains on finances, even when sales are high. Building capital to take on growth projects or simply meet overhead expenses can be challenging if cash flow is reduced to a trickle. Instead of turning to loans, businesses can start building capital by financing their invoices.
Cash Flow Strains Can Be Traced To Unpaid Invoices
The majority of financial restrictions experienced by businesses come not from liabilities, but outstanding receivables. Even if sales are through the roof, the lag experienced from staggered payment schedules can place a huge strain on internal finances. Granted, standard business practices dictate that invoices are issued with aging periods of 30 days or longer, but there is a way to speed up the payment process.
Building Capital Through Invoice Factoring
Invoice factoring is the fastest way for businesses to build up capital without taking on debt from short-term loans. When receivables are submitted for factoring services, unpaid invoices are converted to cash within 24 hours. This provides immediate capital to businesses without having to wait a minimum of 30 days to receive revenue from customers. Invoice factoring does not impact customers in any way. Your customers still have to abide by the staggered payments schedule. On the back end, your business experiences a much healthier and efficient cash flow, which allows you to start building capital reserves to grow and thrive, as well as protect your company in case of an economic downturn.
Automating The Accounting Process
When customer accounts are left unsettled, an inordinate amount of time and resources are dedicated to getting payments. Invoice financing automates the accounting process by turning receivables to cash as invoices are generated. Additionally, no invoices will “age out” and have to go to collections. This frees up resources and ends up saving businesses money, so entrepreneurs can focus on growing operations instead of chasing down payments from customers.
Start Building Capital Resources Today
FSW Funding provides innovating financing solutions to businesses across all industries to improve cash flow and bolster capital reserves. If your business issues invoices with aging periods of 30 days or longer, contact our offices. Our team of experts will work with your directly to create an invoice factoring solution tailored to your needs. Whether you are experiencing a strain on cash flow or want to protect your business from a financial crisis, the team at FSW Funding can help.