The financing solution for big orders you’re probably overlooking—but shouldn’t.
Does taking on that large PO seem impossible? Want to know our solution? It’s probably not the first thing to come to mind: invoice financing. Let’s do a quick refresher. Invoice financing is an invoice loan to borrow money that’s equal to an account receivable you’re waiting on. Basically, selling unpaid invoices to tide your business over ASAP. Here’s a quick rundown on using accounts receivables financing on your big (and much needed) orders.
Put Time On Your Side
Your business just locked down a high-five-worthy order. Awesome. But that invoice your client says is coming soon is not here to fund it. Bummer. Because “soon” is about as vague of a payment ETA as you can get, you’re stuck in business limbo. Invoice financing accelerates the process with A: a defined timeline and B: a wait period as short as 24 hours. Next-day fast cash is something you can work with.
Opt For A Workable Cost Versus A BIG Loss
Think of it this way: You’re not spending more with invoice factoring, you’re actually setting yourself up to make more. And the cost and requirements are usually minimal. Most provider fees are under 2% of an invoice face value for those with good credit and an ability to repay in 30 days. Accessing cash today gives you more control over tomorrow’s potential growth and revenue. Alternatively, passing up a major order equals 0 income, and no one wants that.
Resist The Stigma Nonsense
Invoice financing has unfairly gotten a bad rap for derailing company reputations and success. We’re calling B.S. You know what does? A business going bust because it doesn’t have enough money. Now that SMBs finally see the light and are leveraging invoice financing for their and their customers’ benefits, the tactic has become a modern fix for an old problem. In part, this next-level POV on invoice financing is thanks to new online options that make it easy to implement. Think about it like this: Meeting online in the ’90s: Not cool. Meeting online in 2020: Cool and necessary. So get into a 2020 frame of mind and start acting savvy.
Make The Most Of Your Money
The perks of invoice financing go beyond unlocking instant working capital. It means increasing production that increases sale volume, flexibility to accept super-sized orders, not having to use company assets to secure money, enhancing your credit, accessing new resources, and less debt in the long run. SO worth it, right?