Accounts receivable financing is an excellent way to cover your immediate costs without waiting for customer payments to arrive or for a bank to approve a business loan for your company. While you may think of factoring your company’s receivables as a tool for urgent expenses, financing receivables also can help you meet future goals for your business. Your company can increase your future revenue with the help of receivables financing.
How Selling Invoices Can Expand Future Revenue
A large part of expanding your business is expanding your client base and output. Taking on new work from an existing customer and adding new customers to your list of clients are great ways to increase revenue, but the process often involves upfront costs. Financing your receivables can provide you with the funding to cover your upfront costs and secure new streams of revenue.
Bank loans and customer payment schedules can leave you waiting weeks or even months to access the capital needed to cover the costs of expansion. Accounts receivable financing offers your business much faster turnaround times for funding:
- Bank loan applications are much more complicated and time-consuming than factoring applications, and approval regularly takes several weeks or longer. If your application is not approved, you will need to start the process over with another lender. According to the SBA, 82% of businesses that apply for loans with their bank are denied.
- Customer invoices due in 30, 60 or 90 days may not generate income in time to meet immediate costs. New materials or overtime wages must be covered well before a 90-day payment is due, for example. In the time you wait out terms, you’ve accumulated large expenses.
- The application and approval process for factoring often requires as few as two or three days. Your business can receive funding within hours of approval.
Factoring allows you to cover the upfront costs of taking on new business within days. Selling your invoices is a fast way to secure new revenue streams.
Learn More About How Factoring Can Help You Increase Revenue
Universal Funding can help your business access funding to expand by purchasing your open invoices. Contact us today by completing our simple rate form and learn how you can increase your future revenue by selling invoices today.