Whether your business is slow or your products are flying off the shelves, you may still run into cash flow problems. These problems aren’t necessarily the sign of a failing business, and many successful companies run into problems when invoices aren’t paid in a timely manner. Acquiring new debt and taking out a bank loan can take months and extensive time and research, so what are your options when your company hits a wall?
Are Your Invoices to Blame?
While some may tell you to get your invoices out quickly and set definite payment terms with clients, you may deal with corporate or government clients that are bound by their own policies. Many of these require up to 60 days to pay invoices, and you are left holding the bill in the meantime. Because these invoices often involve large amounts of money, you end up without cash to pay your payroll and meet your monthly obligations. It’s always important to get your invoices out quickly, but this won’t solve all your problems.
Do You Want to Turn to a Bank Loan?
In the past, companies have turned to a short term business loan from a bank or traditional lender for access to cash. With restricted lending requirements and stricter guidelines in place, getting a bank loan is more difficult. Without good personal credit and extensive documentation, it’s difficult to get a bank loan, and you may still end up waiting for 1-2 months while your loan processes.
Will Accounts Receivable Factoring Work for You?
Companies that need liquid cash quickly turn to an accounts receivable factor program. With this process, a factoring company like Universal Funding will buy your invoices and advance you a large part of the payment that is due. Then the company will collect the remaining balance and rebate your company once it is paid. This gives you access to cash fast without the added hassle of collecting money. Upon approval, your invoices can be purchased and funded within a few hours.
Fill Out a Rate Form
If your business is struggling with cash flow problems and you need a simple, viable option to get ahead, fill out our rate form today to learn more about how we can help you.