The beauty of business is there are countless ways you can finance your operations, and some of those ways don’t require you to take on debt. Invoice factoring is one such way. This is a sales transaction, not a loan, so you are able to secure additional cash flow for your company without a monthly payment and added interest hanging over your head.
And Overview Of Invoice Financing
The concept behind invoicing funding is simple: You sell a group of outstanding invoices and receive instantaneous capital. This type of financing is done quite often with business-to-business companies, as it brings in extra cash that can be used to purchase additional inventory prior to a busy season or to fund your company’s expansion among other possibilities.
Why It Works
Invoice factoring works for many reasons. First, it gives you additional cash flow right away. Second, invoice factoring is non-recourse, so you receive payment on open invoices regardless of if your customers zero out their balances. Third, invoice factoring is not a loan, so there is not debt placed on the books and your business can accumulate working capital without liability.
When you exchange open invoices for capital, you will not have to make any monthly installments. You will remit your AR to the person at a slightly discounted rate, and capital is placed in your account within 24 hours. This is a much more efficient method to improving cash flow than waiting 30 days or longer to receive payment from your customers.
The Most Efficient Solution For Working Capital
Instead of relying on short-term loans to fill in gaps in working capital, invoice financing provides a much more efficient solution without any of the restrictions or covenants of traditional financing. Invoice financing is fast, efficient, and affordable. Businesses across all industries use invoice financing to ensure a healthy cash flow to build up growth capital and reduce debt on the balance sheets.
Speritas Capital Partners specialized in working capital solutions for businesses without placing debt on the books. If your business is waiting on payments from customers, or you simply want to automate the accounting process by receiving fast capital for invoices as they are generated, contact our offices. We will work with your directly to create an invoice financing solution which is tailored to your needs to ensure ongoing success.