These days, starting your own business is not just about making money. With more people moving to a ‘living your best life’ mindset, there is freedom and self-fulfillment in having your own business. Small businesses can range from people in their 20’s unable to get a break in today’s job market to stay-at-home moms looking to make some extra cash for their little ones.
In the United States, a small business is defined as any business with fewer than 500 employees. These businesses account for 99.7% of all companies around the country. The problem with small businesses is that 82% of them fail due to cash flow problems.
The good news is, funding receivables financing can help you keep your business moving forward until it can stand on its own. Really, isn’t that why you started your own business to begin with? To stand on your own two feet?
What are Funding Receivables Anyway?
Funding receivables financing is basically how it sounds: your business is given funds to help with cash flow and keep you ahead of your invoices. Accounts receivable financing companies are there to provide business credit funding for your entrepreneurial goals.
Why You Should Care About Funding Receivables Financing for Your Small Business
With 60% of invoices being paid late, chances are that at some point your small business will need cash fast to keep from failing. Invoice factoring, a type of funding receivables financing, takes outstanding invoices due within 90 days and hands over immediate cash for your small business. With funding receivables your business has a better chance of succeeding in the long run, leaving you with a self-sustaining income. Sounds great, right?
How Funding Receivables Financing Can Help Build Your Start-Up
- Same Day Turn AroundOne of the best things about business factoring loans is how quickly the process takes. Within 48 hours your first funding will be set up. This allows you to continue to grow your business and stay ahead of your competition. Once on board, you receive funds in less than 12 hours of receiving your invoice schedules.
- Live Customer ServiceYou know the drill. Some days you just don’t have time to make to an office or branch but you have questions that need answering today. Working with invoice factoring services, you are always in contact with a real person, and not a bot for any and all concerns. This allows you to focus on your business while still getting the help you need to succeed.
- It’s Always Your MoneyWhen you get a loan, it never feels like you are in control of the money that you are breaking yourself to pay back. Well, that’s because you’re not in control of it. It really isn’t your money. With receivables financing though, it’s your money, you just don’t have it yet. Receiving funds to help pay invoices isn’t meant to put you further in debt, it’s meant to keep your business running until it does make enough money. It’s going to happen, you just need the time and space for your business to bring in cash.
- It’s Not a LoanSince you’ll already be dealing with your own money, you don’t have to treat it like a business loan. This means it comes with a lot fewer stipulations and requirements than a loan does. So, rest easy and focus on what is really important: growing your business.
- Available to StartupsAccording to the Wells Fargo Small Business Index, $10,000 is the average cost needed for someone to start their own business. If you are just starting out, you first have to come up with the upfront cost and then you have to worry about paying your invoices. With funding receivables financing, you aren’t denied cash just because you are a start-up company and don’t have the necessary collateral even though the money is there.
Don’t become part of the failing percentages. Keep your business moving forward by choosing funding receivables financing.