A new client means your business will have a new source of revenue, but you first must find the funding to cover raw materials or employee wages to fulfill your new order for goods or services. The old saying, “It takes money to make money,” definitely applies to this particular situation. Instead of putting off necessary payments or delaying your new client’s order, your business can access funding through accounts receivable financing. Financing receivables gets you the cash you need to fulfill your new order, and the turnaround time for approval and funding is fast enough that you can accept the new client right away.
Cover Your Upfront Costs
You may have briefly considered a bank loan to cover the upfront costs taking on a new client, but rejected the idea due to the lengthy approval and funding process associated with lending. You cannot wait weeks or months to purchase the supplies or fund the overtime hours necessary to take on new business.
Financing your receivables, or factoring, is a quick and simple process. You are selling your open invoices in order to access their worth before payment is due. Factoring requires three basic steps:
- You will supply the factoring company with few easily accessible items: a one-page application, your business registration papers, sample invoices and recent accounts receivable and accounts payable reports.
- Once your application is submitted, approval can happen within one to two days.
- Upon approval, your company can receive the funds within hours.
The process of factoring your invoices takes a fraction of the time required for a bank loan, and your business does not acquire any debt. You will have the cash needed to cover your upfront costs in time to meet your client’s expectations.
Factoring for Success
Satisfying your new client with quality goods and services is important. Making sure you have the capital needed to cover your costs in a timely manner is also a large part of creating a loyal client and bringing additional revenue to your business. Factoring can help you succeed by getting you funding quickly and easily while being able to offer terms to your new clients.
Universal Funding can help you finance your receivables and successfully grow your business. Complete our simple rate form to get started.