Invoice Financing Can Prevent Being A Business Statistic
It’s a common myth that 9 out of 10 businesses fail in the first 5 years. In reality, according to the Small Business Administration and the U.S. Bureau of Labor Statistics, about half of all new businesses survive five years and about 1/3 survive 10 years. Perhaps if their decision makers knew about invoice financing they wouldn’t be a part of that statistic.
Yet, according to Bloomberg, “8 out of 10 entrepreneurs fail within the first 18 months, which is a whopping 80% going out of business rate! Interestingly enough these numbers haven’t changed much over the last fifty years.
So, why do businesses fail at such an alarming rate? According to Forbes Magazine, “The primary reason businesses fail is that they simply run out of cash.”
Even business analysts are surprised that otherwise growing and healthy businesses often fail because of the lack of cash flow.
So, if you want to avoid your business being another failure statistic, then your business needs cash to survive, just like you need air to breath. The big question is where do you get the cash?
You could go to the bank and incur more debt. You could use credit cards or lines of credit and again incur more debt. Or you could sell part of your business to a partner or venture capital group, but then you’d be sharing the profits too.
One option that many business owners are excited about is invoice financing. It is the process of selling your accounts receivables to a factoring company like Universal Funding.
The advantages are numerous. At the top of that list is that you are incurring “no” new debt. Additionally, you can get approval in the matter of hours, have your cash in hand in a few days, rates are far lower than a bank or credit cards, and lastly your access to more cash grows as your business grows.
So, to improve your business’s chance for success, please contact Universal Funding at 1-800-405-6035 for a financing solution.